Economist Warns Genius Act Could Disrupt Financial Stability

The US recently passed a law called the Genius Act that lets companies issue digital money tied to the dollar, like Amazon could make its own digital dollars.

An economist, Barry Eichengreen, is worried this could cause problems.

He thinks it could be hard to regulate these new digital dollars, and that there might be many different versions that don't work well together.

He also fears that if these digital dollars become popular in other countries, it could weaken their own money and make it harder for their central banks to manage the economy.