BlackRock CEO Warns U.S. Risks Losing Reserve Currency Status to Bitcoin
Larry Fink, CEO of BlackRock, voiced concerns in his annual investor letter, highlighting that the U.S. dollar could eventually lose its status as the world’s reserve currency if the country’s debt continues to rise unchecked.
The head of BlackRock pointed to the increasing role of digital assets, like Bitcoin, as a potential challenge to the dollar’s global supremacy.
U.S. Debt Growing Faster Than Economy
Fink emphasized the alarming trajectory of the U.S. debt, noting that since 1989, it has grown at a rate three times higher than GDP. This year, the U.S. government’s interest payments are expected to surpass $952 billion, a figure that exceeds military spending. If left unaddressed, this could lead to a scenario by 2030 where debt service and mandatory spending consume all federal revenue, triggering a permanent deficit.
Bitcoin’s Role in a Changing Financial Landscape
While Fink made it clear he isn’t opposed to digital assets, he warned that decentralized finance could alter the balance of power in the global economy. As investors increasingly view Bitcoin as a safer store of value, he suggested that the U.S. dollar’s dominance could face significant challenges from digital currencies.
IBIT’s Remarkable Growth
Reflecting on BlackRock’s Bitcoin ETF, IBIT, Fink shared how the fund has made history by becoming the largest ETF launch in history. In under a year, IBIT accumulated $50 billion in assets under management, a huge success driven largely by $37.4 billion in inflows during 2024 alone. Notably, IBIT ranks as the third-largest ETF in asset growth, a testament to Bitcoin’s increasing appeal among investors.
Long-Term Potential of Bitcoin
Earlier this year, Fink suggested that if more institutional and retail investors allocated a small percentage of their portfolios to Bitcoin, its price could skyrocket to $700,000. BlackRock has also expanded its reach by offering Bitcoin-related products in both Canada and Europe, positioning itself as a leading player in the digital asset space.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a "detective-like" mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
