BlackRock CEO and Chairman Larry Fink said the US dollar risks losing its global reserve currency status for digital assets like Bitcoin.
Fink said in the chairman’s letter to annual investors.
Fink wrote in the letter that the United States has benefited from its status as a global reserve currency for decades. However, since 1989, citizen debt has grown at a rate three times GDP, so “it is not guaranteed to last forever.” He further argued that government spending and debt services would consume all federal revenues by 2030, creating a permanent deficit.
If the US does not manage debt and deficits, USD could lose the Bitcoin global reserve currency situation, Larry added.
Diversified finance is an “extraordinary innovation” that can make the market faster, cheaper and more transparent, but it could undermine the economic benefits of America if investors start to see Bitcoin as a “safer bet” than the US dollar.
Fink also highlighted the success of BlackRock’s Bitcoin Exchange-Traded Funds (ETFs). Spot Bitcoin ETF is an investment fund that tracks the price of Bitcoin. The stock is traded on traditional stock exchanges.
In particular, BlackRock is not only the world’s largest asset manager, but also the largest publisher of Spot Bitcoin ETFs. As of March 28th, BlackRock’s Spot Bitcoin ETFS holds $48 billion under its managed assets in accordance with SOSOValue.
This has so far been one of the biggest institutional investments in cryptocurrency. In fact, BlackRock’s traditional funds also report that they own the company’s Bitcoin ETF.
Bitcoin, meanwhile, was trading at $83,560.55 at press, following Kraken’s price supply.