Fink Warns BTC Could Overtake the US Dollar as Global Reserve Currency
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Fink mentioned that decentralized finance and asset tokenization could reshape global finance but also threaten America’s economic dominance. Meanwhile, major corporations are doubling down on Bitcoin. Japanese firm Metaplanet issued $13.3 million in zero-interest bonds to fund further Bitcoin purchases. US-based Strategy also bought an additional 22,048 BTC for $1.92 billion, bringing its total holdings to over 528,000 BTC. US Dollar May Lose Global Status to Bitcoin BlackRock CEO Larry Fink raised concerns that the United States could lose the US dollar’s global reserve currency status to Bitcoin or other digital assets if it fails to rein in its mounting national debt. In his Annual Chairman’s Letter to Investors, Fink talked about the potential of decentralized finance (DeFi) as an extraordinary innovation that enhances market efficiency by making transactions faster, cheaper, and more transparent. However, he also warned that the same innovation could erode America’s economic advantage if global investors begin to perceive Bitcoin as a safer and more reliable store of value than the US dollar. Fink’s warning came against the backdrop of a growing national debt crisis. According to Trading Economics, US debt amounted to 122.3% of GDP in 2023. This was a sharp increase from 105% in 2018. (Source: Larry Fink’s Letter to Investors) Moody’s maintained the country’s AAA credit rating but changed its outlook to negative due to concerns over the fiscal trajectory. The Joint Economic Committee reported that as of early March 2025, the national debt stood at $36.2 trillion, growing at a pace of roughly $4.9 billion per day. The Bipartisan Policy Center also sounded the alarm, and projected that the US could default on its obligations as early as July 2025 if no action is taken. (Source: US Joint Economic Committee) Thanks to these financial concerns, Bitcoin emerged as a safe haven asset…
Filed under: News - @ April 1, 2025 5:30 am