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BlackRock CEO Larry Fink has warned that Bitcoin could usurp the U.S. dollar.
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Fink has sounded the alarm on U.S. debt.
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Ironically, some also see Bitcoin as the solution to the U.S.’s problems.
BlackRock (NYSE:BLK) CEO Larry Fink has joined the chorus of voices warning that the U.S. dollar’s reserve currency status is at risk. Unlike most, however, he has gone one step further to suggest a likely replacement: Bitcoin.
Fink warned in his annual letter on Monday to investors that Bitcoin could replace the U.S. dollar as the world’s reserve currency.
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While much of the recent concern around the dollar’s reserve status has been triggered by President Donald Trump’s tariff policy, Fink pointed to the U.S.’s ballooning national debt as the primary concern.
At the time of writing, this debt stands at over $36 trillion and, according to Fink, is growing at an unsustainable rate.
Specifically, Fink lamented that the national debt has grown three times the U.S. GDP since 1989, with interest payments at $952 billion set to surpass defense spending this year. He also argued that government spending and debt servicing were on pace to surpass all government revenue by 2030, creating a permanent deficit.
“If the U.S. doesn’t get its debt under control, if deficits keep ballooning, America risks losing that position to digital assets like Bitcoin,” he wrote.
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Nonetheless, Fink stressed that his warning wasn’t meant to be missive against digital assets.
“I’m obviously not anti-digital assets (far from it; see the next section). But two things can be true at the same time: Decentralized finance is an extraordinary innovation. It makes markets faster, cheaper, and more transparent. Yet that same innovation could undermine America’s economic advantage if investors begin seeing Bitcoin as a safer bet than the dollar,” he wrote.
Indeed, Fink has become a vocal proponent of Bitcoin over the past year, especially since BlackRock launched a spot Bitcoin exchange-traded fund. This fund is the largest Bitcoin ETF in the world, with $48 billion in assets under management at the time of writing.
