Bitcoin (BTC) Could Eat Away at the U.S. Dollar’s Reserve Status

At a time when the Trump administration is fully backing the crypto industry in the US, BlackRock CEO Larry Fink, in a letter to shareholders, has warned that Bitcoin (BTC)

Larry Fink, CEO of BlackRock, the world's largest asset manager, has expressed concern over Bitcoin (BTC) potentially eroding the U.S. dollar's reserve currency status, according to his latest letter to shareholders.

As the administration of U.S. President Donald Trump shows full support for the crypto industry, Fink's insights offer a unique perspective. With BlackRock's AUM reaching a record $11.6 trillion, his observations carry significant weight.

According to Fink, if the U.S. fails to manage its debt effectively, and deficits continue to expand at the current rate, the country might lose its dominant economic position to digital assets.

"The U.S. has benefited from the dollar serving as the world’s reserve currency for decades. But that’s not guaranteed to last forever," Fink stated in his letter.

Since the Times Square debt clock commenced operation in 1989, Fink highlighted that the U.S. national debt has risen at a rate triple that of GDP.

"This year, interest payments will surpass $952 billion— exceeding defense spending. By 2030, mandatory government spending and debt service will consume all federal revenue, creating a permanent deficit," he added.

At a time when Trump has announced plans for a crypto strategic reserve and the administration is showing support for crypto, Fink's words about Bitcoin are noteworthy.

"I am not anti-digital assets. In fact, I see decentralized finance as 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," Fink said.