Viewpoint: The GENIUS Act stablecoin bill in the United States may lead to the privatization of the US dollar and face the risk of de dollarization

According to Cointelegraph, the US Senate Banking Committee has voted to pass the GENIUS Act, which regulates stablecoin issuers and paves the way for the adoption of stablecoins as a payment method outside of cryptocurrency trading. However, the bill may trigger the potential privatization of the US dollar and increase the risk of de dollarization, as it allows stablecoin issuers to invest in money market funds, repurchase agreements, and uninsured bank deposits without being bound by the same federal consumer financial protection measures as credit cards and peer-to-peer payment platforms. These assets have been rescued in past financial crises, indirectly affecting the US dollar. Data shows that the proportion of US dollars in global foreign exchange reserves has dropped from over 70% at the beginning of the 21st century to below 60%.