BlackRock CEO Warns of Bitcoin Risks to US Dollar
Date: 2025-04-01 Author: Henry Casey Categories: CRYPTO PAYMENTS
Fink noted that while he is not against digital assets, they could pose a threat to America’s economic dominance. In his view, decentralized finance is a significant technological advancement that speeds up transactions and brings transparency to markets. However, if investors start to view Bitcoin as a safer asset than the dollar, it could significantly weaken the US position.
This year, Fink said, the cost of servicing the US national debt will exceed $952 billion, which is more than the budget for defense. If the situation continues as is, mandatory government spending and debt payments will consume all federal revenue by 2030, leading to a permanent deficit.
Fink has previously spoken about how inflation could lead to preference for Bitcoin over fiat currencies. In January this year, at the World Economic Forum in Davos, he said that the value of Bitcoin could reach $700,000 per coin if concerns about the depreciation of fiat currencies continue to grow.
The head of BlackRock also emphasized that asset tokenization could radically change the investment industry. Thanks to this technology, transactions will become instantaneous, eliminating the need for intermediaries. In his opinion, this will free up billions of dollars that are currently frozen due to delays in settlements and direct them back into the economy for further growth.
Tokenization, according to Fink, can make investments more accessible to a wide range of people. In particular, assets such as real estate can be divided into small parts, which will allow ordinary investors to participate in investments that were previously available only to the richest.
Since January 2024, the iShares Bitcoin Trust (IBIT), a spot exchange-traded fund launched by BlackRock, has been operating on the US market. This product has quickly attracted billions of dollars and has become the most successful exchange-traded fund in history.
According to SoSoValue, IBIT has raised almost $40 billion since its launch, and the fund’s net assets reached $48 billion by the end of March. At the same time, the total value of assets of all 12 US bitcoin ETFs is about $98 billion. In addition, last week it became known that BlackRock launched a new exchange-traded product based on bitcoin in Europe.
