BlackRock CEO Warns Bitcoin Could Supplant the US Dollar as Global Reserve Currency

BlackRock CEO Larry Fink warned in his annual investor letter that the US Dollar’s role as the global reserve currency is at risk if America’s mounting national debt continues unchecked. He suggested that investors might start viewing digital assets, such as Bitcoin, as a safer alternative to the Dollar.

Fink emphasised the transformative potential of digital assets, noting that while their innovation is extraordinary, they could eventually erode America's economic advantage. According to him, if US deficits keep rising, there’s a real possibility that Bitcoin could overtake the Dollar as the world’s reserve asset.

In addition, Fink discussed the growing trend of tokenising real-world assets, which he believes will democratise investing. He expects tokenised funds to become as common as exchange-traded funds (ETFs) in the eyes of investors. BlackRock, a leader in this space, is already making significant strides with its BlackRock USD Institutional Digital Liquidity Fund, which is nearing US$2 billion, and its iShares Bitcoin Trust, which manages over US$39 billion in assets. The firm has also expanded its presence by launching the iShares Bitcoin ETP in Europe.

On the digital asset front, crypto ETFs have seen significant activity recently. Bitcoin ETFs alone attracted around US$195–196 million in inflows last week, while ETFs focused on altcoins—covering assets like Ethereum, XRP, Solana, and SUI—brought in a combined total of US$33 million, marking a turnaround after four consecutive weeks of outflows.