U.S. dollar could lose reserve status to Bitcoin, BlackRock CEO Fink says

April 01, 2025 03:43 AM AEDT | By Investing

Google News:

U.S. dollar could lose reserve status to Bitcoin, BlackRock CEO Fink says

Recent News

Gold Resource Corporation Adds to Board of Directors

Platinum Asset Management Adjusts Course Amid Outflows and Merger Talk...

Equity Trustees (ASX:EQT) Pays Fine Over Fund Disclosure Issues

Raiden Resources (ASX:RDN, DAX:YM4) Identifies Potential Epithermal Fe...

Investing.com -- BlackRock Inc (NYSE:BLK) CEO Larry Fink highlighted the growing U.S. national debt and the potential of digital assets like Bitcoin to undermine the U.S. dollar's reserve status. In his annual letter to investors, Fink pointed out the rapid pace of the national debt growth, cautioning that if the U.S. doesn't control its debt and deficits, digital assets could become a safer bet than the dollar.

"If the U.S. doesn’t get its debt under control, if deficits keep ballooning, America risks losing that position to digital assets like Bitcoin," Fink stated.

Fink emphasized the innovation of decentralized finance and the transformative potential of tokenization in the financial industry. He explained that tokenization, which turns real-world assets into digital tokens tradable online, could make markets faster and more accessible, allowing for fractional ownership and more democratic investing processes.

The CEO of the world's largest asset manager also underscored the necessity of digital identity verification systems to support the tokenization of assets. He cited the example of India, where over 90% of citizens can securely verify transactions directly from their smartphones, suggesting that similar systems could bolster the efficiency and accessibility of financial systems globally.

Fink drew parallels between the historical democratization of financial markets and the current potential of tokenization and digital assets. He stressed that markets require conscious effort and vigilance to evolve in a way that serves everyone equally, reflecting on BlackRock's 37-year history as a fiduciary to its clients.

Fink reiterated the importance of investing as a tool for generating wealth and improving lives, calling for the expansion and democratization of access to the capital markets. He expressed his belief that investing is not only an act of hope but a means to turn hopes into reality, emphasizing the value of protecting and expanding this opportunity for all.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.