Key dealers
- Blackrock CEO Larry Fink says the United States risks losing its reserve currency status to Bitcoin if it does not slow down debt and deficit.
- FINK also emphasizes tokenization as an economic revolution and calls it the next step in democratization of investment.
Blackrock CEO Larry Fink issued a sharp warning in its 2025 annual letter to investorssays the United States is at risk of losing its global reserve currency status to Bitcoin.
“If the United States does not get its debt under control, if the deficits continue to balloon, America risks losing that position to digital assets like Bitcoin,” wrote FINK in its annual letter 2025 to investors.
His comments come when Blackrock’s own actions echo this conviction. Since they launched their Tot Bitcoin ETF, the asset manager has collected over 575,000 BTC, which cement its position as both the largest asset manager and the largest holder of Bitcoin in the ETF space.
Fink’s comments and the company’s Bitcoin strategy signal that Blackrock sees Bitcoin as the dominant digital asset class that is prepared to lead the economic future.
Although he emphasized his support for digital innovation, he warned that the same technology could erode the US border if investors begin to see Bitcoin as a safer alternative to the dollar.
The latest developments have emphasized the urgency in Fink’s warning. Earlier this month, Moody’s view of the US debt down to negatives, citing increasing concern over former President Donald Trump’s new wave of customs and unfavorable tax cuts.
At the same time, the Bipartisan Policy Center has estimated that the United States could stand for its obligations as early as July if Congress fails to intervene.
Fink’s warning about US debt came together with an optimistic view of innovation. He described tokenization as one of the most transformative changes in modern financing.
Claims that the transformation of real assets into blockchain-based tokens would revolutionize investment by enabling immediate decommissioning, democratized access and better returns.
“Every share, every bond, every fund – every asset – can be tokenized,” he wrote. “If they are, it will revolutionize investment.”
The most important challenge, he said, is identity verification, which remains a technical and regulating bottleneck for tokenized markets.
FINK quoted India’s Aadhaar system as a potential model for the digital financial infrastructure needed to scale such solutions globally.
Despite the anxiety that clients and leaders expressed all over the world expressed FINK long -term optimism in the capital markets and called them one of the most powerful human systems ever created.
Yet he warned, he warned, may not be enough to preserve the US dominance if Washington does not get its financial house in order.