BlackRock CEO Larry Fink Warns Bitcoin's Growing Appeal as a Safe-Haven Asset Could Threaten the US Dollar's Global Dominance

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The appeal of Bitcoin (BTC) as a safe-haven asset could threaten the U.S. dollar’s global dominance, according to BlackRock CEO Larry Fink.

In his Annual Chairman’s Letter to Investors, Fink highlighted that decentralized finance is “an extraordinary innovation” that provides broader, deeper and more efficient markets.

However, he cautioned that this same innovation “could undermine America’s economic advantage if investors begin seeing Bitcoin as a safer bet than the dollar.”

U.S. Could Default On Ballooning Debt By July

Fink’s warning comes as the U.S.’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 U.S. could default on its debt by as early as July 2025.

Despite this, Moody’s Ratings has retained the U.S.’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 (NYSE:STRK) leading the charge.

Firms like Japan-based Metaplanet have also started to buy Bitcoin, while GameStop (NYSE:GME) ‘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 transactions to take place seamlessly 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 immediately reinvested back into the economy.