Bitcoin’s bid for global heavyweight status just got a serious endorsement: Larry Fink, CEO of BlackRock, thinks it could ultimately push the U.S. dollar off its perch as the world’s reserve currency.
Fink’s rationale is blunt: U.S. debt. He warned that if America doesn’t rein in its escalating debt—currently hovering around $36 trillion—and spiraling deficits, the dollar’s dominance is vulnerable to digital contenders like Bitcoin. Interest payments on that debt are projected to hit nearly $1 trillion in 2025 alone, and Fink foresees a future where mandatory government spending and debt servicing consume all federal revenue by 2030, birthing a permanent deficit.
This isn’t the first alarm bell sounded about fiscal irresponsibility potentially boosting Bitcoin. Galaxy Digital founder Mike Novogratz voiced similar concerns last year, pointing out that mounting national debt stokes fears of currency devaluation and inflation. BlackRock has also recently suggested a counter-intuitive scenario: a recession could actually pump up Bitcoin’s value as investors flock to scarce assets, drawing parallels to gold and BTC as safe havens.
Beyond currency competition, Fink also highlighted tokenization in his annual letter to investors, predicting it could “revolutionize investing.” He argued that tokenizing assets could “democratize markets” and even eliminate the concept of market closing times.