Bitcoin’s Rise Challenges US Dollar’s Dominance, Says BlackRock CEO

Larry Fink, the CEO of BlackRock, suggests that Bitcoin could challenge the US dollar’s global reserve currency status. In his annual letter to investors, Fink highlights the rising national debt and the emergence of digital assets as key factors weakening the dollar’s dominance.

He states, “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.” With debt outpacing GDP growth since 1989 and interest payments expected to exceed $952 billion this year, Fink warns that the dollar’s position is at risk if deficits persist.

According to Fink, Bitcoin and other decentralized assets could become viable alternatives as investors lose confidence in traditional currencies. He acknowledges, “Decentralized finance is an extraordinary innovation. It makes markets faster, cheaper, and more transparent.” However, this same innovation could undermine America’s economic standing.

BlackRock’s Move into Bitcoin

BlackRock made headlines in 2024 by launching the iShares Bitcoin Trust (IBIT), which quickly became the most successful exchange-traded fund (ETF) launch ever. With $11.5 trillion in assets under management, BlackRock’s embrace of Bitcoin signals growing institutional acceptance of digital assets.

Fink also critiques the current financial infrastructure, describing it as outdated. He draws a striking comparison: “If SWIFT is the postal service, tokenization is email itself.” Blockchain-based tokenization, he believes, could significantly enhance transaction efficiency, eliminating delays and unlocking billions in capital.

He envisions a future where, “Every stock, every bond, every fund—every asset—can be tokenized. If they are, it will revolutionize investing.” Faster transactions and reduced settlement times would boost economic growth and democratize investing opportunities.