The Bank for International Settlements issued its sharpest warning yet on 24 June, arguing in an advance chapter of its annual report that privately issued stablecoins “perform poorly as money”. The BIS said the $260 billion market—of which 99 per cent is pegged to the U.S. dollar—poses risks to monetary sovereignty, could trigger fire-sales of reserve assets and should be confined to a tightly regulated role while central banks push ahead with tokenised versions of their own liabilities. Europe’s largest asset manager joined the chorus on 3 July. Amundi’s chief investment officer, Vincent Mortier, told Reuters that the U.S. GENIUS Act—approved by the Senate last month and expected to clear Congress—could unleash a wave of dollar-backed coins that “potentially destabilise the global payment system”. Mortier warned that widespread use of the tokens would act as “quasi-banks”, encourage dollarisation abroad and undermine countries’ monetary autonomy. JPMorgan estimates the stock of stablecoins could double to $500 billion within a few years, with some projections as high as $2 trillion. Because the GENIUS Act requires issuers to hold U.S. Treasuries, a surge would funnel additional demand into U.S. debt while shifting capital away from other markets. With more than 80 per cent of stablecoin transactions already taking place outside the United States, both the BIS and Amundi are urging regulators to coordinate swiftly to prevent systemic risks.