BlackRock CEO Larry Fink Warns Bitcoin Could Undermine US Dollar’s Global Dominance

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BlackRock CEO Larry Fink has warned that Bitcoin’s growing appeal as a safe-haven asset could threaten the US dollar’s global dominance.

In his Annual Chairman’s Letter to Investors, the BlackRock CEO wrote that decentralized finance is “an extraordinary innovation,” but added that this same innovation “could undermine America’s economic advantage if investors begin seeing Bitcoin as a safer bet than the dollar.” 

USA flag

US Could Default On Ballooning Debt By July

Fink’s warning comes as the US’s gross national debt hit $36.2 trillion on March 5, according to the country’s Joint Economic Committee. The national debt is rising at a rate of $1.8 trillion per annum, which equates to $4.9 billion per day. 

Should the debt continue to rise, the Bipartisan Policy Center warned this month that the US could default on its debt by as early as July 2025. Despite this, Moody’s Ratings has retained the US’s AAA credit rating even as it has downgraded its outlook to negative, indicating a possible future downgrade.

Bitcoin has become known as a decentralized safe haven for investors who want to hedge against inflation and protect their financial portfolios from uncertain macroeconomic conditions.

Several firms have embraced BTC as part of their treasuries, with Michael Saylor’s Strategy leading the charge.

Firms like Japan-based Metaplanet have also started to buy Bitcoin, while GameStop’s board of directors has recently voted in favor of buying BTC as well.

BlackRock CEO Champions Tokenization

In his letter, Fink also praised tokenization. He went on to say that “tokenization is democratization,” noting that the innovation has enabled seamless transactions without “cumbersome paperwork or waiting periods.”

According to Fink, if every asset were to be tokenized it would “revolutionize investing.”

He added that tokenizing assets would remove the need for markets to close, slash transactions times from days to seconds and allow for the billions of dollars immobilized by settlement delays to be reinvested immediately back into the economy.

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