Larry Fink, CEO of BlackRock, Warns Bitcoin Could Undermine the US Dollar

Larry Fink, CEO of the world's largest asset manager BlackRock, is certainly not a nay-sayer when it comes to crypto. Unlike, let's say, JPMorgan's Jamie Dimon

Larry Fink, CEO of BlackRock, recently penned a letter to investors, offering a stark warning: Bitcoin could undermine the US Dollar if the United States doesn’t get a handle on its debt situation.

Fink, known for his early adoption of crypto, has spoken broadly about the value of Bitcoin and other benefits of crypto, like tokenisation of real-world assets (RWAs).

However, in his letter, Fink highlighted the implications of US debt on the USD’s global standing.

USD Could Lose Status as Reserve Asset to Bitcoin, Says Fink

According to Fink, the US has done well with the USD being the world’s reserve currency, but “that’s not guaranteed to last forever”.

Since 1989, US national debt has grown three times faster than GDP, and interest payments now outpace defence spending. By 2030, all federal revenue will be consumed by mandatory spending and debt service, risking economic stability.

In these challenging times, investors are seeking stability and safety, especially with the threat of tariff wars and countries facing threats to their sovereignty.

Fink: A Firm Believer That Tokenisation Can Aid Democratisation

Ultimately, Fink remains optimistic, a trait often mentioned by those close to him.

Fink also believes that more investors need a share of the wealth and that tokenisation can help with that, in essence democratising investing.

Tokenisation, which means turning RWAs like bonds, stocks, but also real-estate and infrastructure projects into digitally tradable tokens, makes it possible to invest with even smaller amounts of money.