Latest news with #Mortier
The Star
a day ago
- Business
- The Star
Amundi warns US stablecoin policy could destabilise global payments system
FILE PHOTO: A logo of Amundi is seen outside the company headquarters in Paris, France, February 3, 2023. REUTERS/Sarah Meyssonnier/File Photo LONDON (Reuters) -Europe's largest asset manager has raised concerns that a boom in dollar-backed stablecoins in the wake of the United States' GENIUS Act could cause a major shift in money flows that destabilises the global payment system. The U.S. Senate passed the GENIUS Act a bill last month to create a regulatory framework for the U.S.-dollar-pegged cryptotokens. It is expected to be passed by the House of Representatives and approved by President Donald Trump, leaving other countries worried about a wave of so-called 'dollarization' of economies if their own populations buy them. "It could be genius, or it could be evil," Amundi Asset Management's chief investment officer Vincent Mortier told Reuters, voicing his concerns about the U.S. act. JPMorgan expects the amount of stablecoins in circulation to roughly double to $500 billion in the next few years, although some estimates have put it as high as $2 trillion. As stablecoins need be pegged to the dollar under the U.S. act, it will trigger buying of U.S. Treasury bonds. That has its benefits for the U.S. as it grapples with a gaping budget deficit, but could also pose problems for the U.S. and other countries. "In doing so you create an alternative to the U.S. dollar and that could lead to more weakening of the dollar," Mortier said. "Because if a country is pushing a stablecoin, it could be perceived as pushing the message that the dollar is not that strong." Currently, 98% of all stablecoins are pegged to the dollar, but more than 80% of stablecoin transactions happen outside the United States. Italy's finance minister, Giancarlo Giorgetti, warned in April that the U.S. stablecoin policies presented an "even more dangerous" threat to European financial stability than Trump's trade war. His argument was that access to dollars without needing a U.S. bank account would be attractive to millions of people and could undermine countries' monetary sovereignty. The Bank for International Settlements issued a similar warning on the risks posed by stablecoins, noting their potential to undermine monetary sovereignty, transparency issues and the risk of capital flight from emerging economies. Mortier, who oversees the 2 trillion euros ($2.36 trillion) of assets Amundi manages - none of which are in crypto - said he still had not fully made up his mind about stablecoins, but the worry was that a mass uptake could impact financial stability. As well as the dollarization issue, they would become "quasi-banks" he said, as people will deposit money in a coin assuming they can take it out again whenever they want. They will also be used as a direct means of payment. "It could potentially destabilise the global payment system," he said. "I'm not so sure it's a good idea". ($1 = 0.8483 euros) (Reporting by Marc Jones, Editing by Louise Heavens)
Yahoo
a day ago
- Business
- Yahoo
Amundi warns US stablecoin policy could destabilise global payments system
By Marc Jones LONDON (Reuters) -Europe's largest asset manager has raised concerns that a boom in dollar-backed stablecoins in the wake of the United States' GENIUS Act could cause a major shift in money flows that destabilises the global payment system. The U.S. Senate passed the GENIUS Act a bill last month to create a regulatory framework for the U.S.-dollar-pegged cryptotokens. It is expected to be passed by the House of Representatives and approved by President Donald Trump, leaving other countries worried about a wave of so-called 'dollarization' of economies if their own populations buy them. "It could be genius, or it could be evil," Amundi Asset Management's chief investment officer Vincent Mortier told Reuters, voicing his concerns about the U.S. act. JPMorgan expects the amount of stablecoins in circulation to roughly double to $500 billion in the next few years, although some estimates have put it as high as $2 trillion. As stablecoins need be pegged to the dollar under the U.S. act, it will trigger buying of U.S. Treasury bonds. That has its benefits for the U.S. as it grapples with a gaping budget deficit, but could also pose problems for the U.S. and other countries. "In doing so you create an alternative to the U.S. dollar and that could lead to more weakening of the dollar," Mortier said. "Because if a country is pushing a stablecoin, it could be perceived as pushing the message that the dollar is not that strong." Currently, 98% of all stablecoins are pegged to the dollar, but more than 80% of stablecoin transactions happen outside the United States. Italy's finance minister, Giancarlo Giorgetti, warned in April that the U.S. stablecoin policies presented an "even more dangerous" threat to European financial stability than Trump's trade war. His argument was that access to dollars without needing a U.S. bank account would be attractive to millions of people and could undermine countries' monetary sovereignty. The Bank for International Settlements issued a similar warning on the risks posed by stablecoins, noting their potential to undermine monetary sovereignty, transparency issues and the risk of capital flight from emerging economies. Mortier, who oversees the 2 trillion euros ($2.36 trillion) of assets Amundi manages - none of which are in crypto - said he still had not fully made up his mind about stablecoins, but the worry was that a mass uptake could impact financial stability. As well as the dollarization issue, they would become "quasi-banks" he said, as people will deposit money in a coin assuming they can take it out again whenever they want. They will also be used as a direct means of payment. "It could potentially destabilise the global payment system," he said. "I'm not so sure it's a good idea". ($1 = 0.8483 euros) Sign in to access your portfolio
Yahoo
26-03-2025
- Business
- Yahoo
Amundi Sees Korean Stocks Braving Short Sellers to Extend Rally
(Bloomberg) -- For short sellers who are ready to take aim at South Korean stocks when a ban is lifted next week, Europe's biggest asset manager has some advice: such a move may backfire. 'It'll be very dangerous for short sellers to target South Korea,' Vincent Mortier, group chief investment officer of Amundi SA, said in an interview on Tuesday in Hong Kong. With negatives like the political and economic uncertainty already priced in, investors may be 'surprised to the upside,' he added. Mortier expects South Korean equities to extend their recent gains when a curb on short selling is lifted on March 31, and he sees the move as a step toward normalization that may help the country win developed market status from MSCI Inc. Such anticipation, along with the government's efforts to boost stock valuations, offer an 'interesting opportunity' for mid- and long-term investors, the money manager said. South Korean stocks are showing signs of a revival following a dismal 2024, when political headwinds including the president's impeachment hurt the market's prospects. The Kospi Index has gained more than 9% this year, outperforming the MSCI Asia Pacific Index, as heavyweights Samsung Electronics Co. and SK Hynix Inc. lured investors back on cheaper valuations. The CIO for the $2.4 trillion asset manager sees the market as under-rated and under-owned by foreigners, and expects the government's 'value-up' program to help stocks follow the trajectory of Japan, where corporate reforms pushed benchmarks to new highs. While some worry the revival of short selling may fuel market volatility, others say it can also improve liquidity by attracting hedge funds, who use the strategy to manage risks. Pictet Asset Management said in February it plans to buy more stocks once the resumption allows it to hedge its long equity positions. South Korea has long sought to win MSCI's upgrade from emerging market status, but its short-selling ban — in place since November 2023 — is regarded as a barrier. A change in the MSCI classification, which is only 'a question of time,' will attract flows and a re-evaluation of the market, according to Mortier. The Kospi trades at only nine times its forward earnings estimates, compared with around 14 for MSCI Asia and Japan's Topix Index. Persistent selling by foreigners since mid-2024 has pushed the amount they hold to 31.6% of the Kospi as of February, down from 35.6% in July, according to data from the Korea Financial Investment Association. Among Asian benchmarks, the Kospi's advance this year is next only to Hong Kong stocks, which are benefiting from China's technology breakthrough. Mortier said that while there's a lot of talk on China, the innovation and investments from South Korean companies are also worth noting. He prefers traditional automakers and financials, given that they will benefit from the 'value-up' initiative. --With assistance from Youkyung Lee. More stories like this are available on ©2025 Bloomberg L.P.
