BlackRock CEO Larry Fink 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.

Larry Fink, CEO of BlackRock (NYSE:), expressed concerns in his annual investor letter about the U.S. risking its reserve currency status to Bitcoin (BTC) as debt continues to rise.

Top U.S. official warns of potential 'permanent deficit' as debt service and mandatory spending set to consume all federal revenue by 2030

The head of the world’s largest asset manager also highlighted the increasing role of digital assets, which could challenge the dollar’s global supremacy.

U.S. debt has been growing at a rate three times faster than GDP since 1989

Fink pointed out that since 1989, U.S. debt has been accumulating three times faster than GDP, and by 2024, interest payments on government debt are expected to exceed military spending.

Moreover, if current trends persist, by 2030, debt service and mandatory spending will consume all federal revenue, setting the stage for a permanent deficit.

“This scenario would fundamentally alter the balance of power in the global economy, and it is a risk that must be managed,” Fink warned.

While Fink isn’t opposed to digital assets, he noted that decentralized finance could alter the balance of power in the global economy.

As investors increasingly see Bitcoin as a safer store of value, he suggested that the U.S. dollar’s dominance could face significant challenges from digital currencies.

“Indeed, if a substantial portion—perhaps 10 percent—of institutional and retail investors decided to allocate a small percentage of their portfolios to Bitcoin, its price could escalate rapidly, potentially reaching $700,000.”

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.

suggesting 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 expanded its reach by offering Bitcoin-related products in both Canada and Europe, positioning itself as a leading player in the digital asset space.

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