BlackRock CEO warns US debt could weaken dollar’s global role to Bitcoin

The United States is at risk of losing its global financial domination against Bitcoin if the country’s deficits continue to grow, warned the CEO of Blackrock, Larry Fink, in his annual letter.

Blackrock The CEO Larry Fink warns that the domination of the US dollar is not guaranteed because a demotted debt could push investors to “digital assets like Bitcoin (BTC), “Wrote Fink in his annual letter Monday, March 31.

The leader of the largest asset manager in the world, supervising $ 11.5 billion in assets from 2024, noted that national debt has increased three times faster than GDP since 1989.

“This year, interest payments will exceed $ 952 billion – exceeding defense expenses. By 2030, compulsory public spending and the debt service consume all federal income, creating a permanent deficit. ”

Larry Fink

While Fink recognized innovation behind decentralized finances, he also warned that it could erode the economic advantage of America, declaring that decentralized finance “could undermine America’s economic advantage if investors are starting to see Bitcoin as a worse bet than the dollar”.

Tokenization makes the investment “more democratic”

Blackrock Bitcoin took off in 2024 and drawn more than $ 48 billion In March, which makes the crypto more common. However, Fink considers blockchain as much larger than simple bitcoin.

For example, he considers tokenization as the next major development of finance, which suggests that “each actions, each obligation, each fund – can be tokenized”, and arguing that blockchain technology could make the markets more efficient and accessible.

More importantly, Fink says that tokenization makes investment “much more democratic” because fractional property could reduce “one of the obstacles to investment in precious and inaccessible assets such as private real estate and investment capital”.