The US dollar has been the international reserve currency since the end of World War II. Has that changed? BlackRock CEO Larry Fink, along with a few crypto experts, believes there is a possibility. Not immediately, but someday. perhaps.
“It’s very unlikely in the short term,” said CK Zheng, co-founder and CIO of ZX Squared Capital. “But in the long run, it’s more likely.”
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The relative stability of the dollar has made it the best currency for international exchanges and a commonly recognized “safe” place for storing wealth for almost a century. In his annual letter to investors, Fink wrote: “If the US does not manage its debt, if the deficit continues to swell, the US risks losing its position in digital assets like Bitcoin.”
“The natural evolution of money can become decentralized finances,” said Jonathan Rose, CEO of BlockTrust IRA and Genesis Gold Group. Pointing to some advantages, he shared that cryptocurrencies like Bitcoin offer “faster, cheaper, more transparent” transactions.
However, challenges arise from the perspective of Bitcoin’s safety, security and accessibility as its main currency instrument. “It will take some time for the full integration,” Rose said.
Similarly, there is a learning curve to understand investment, storage and use that requires encryption. “If you’re looking to invest in these digital assets, you have to have military-grade encryption… Get 24/7 security, security and insurance,” he said.
“Crypto Custodian Services with strict regulatory compliance offers excellent solutions for most investors,” added Zheng.
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“In the (theoretical) future world of dominant Fiat currency, Bitcoin could become the world’s reserve currency given the nature of decentralization,” Zheng said. “For that to happen, it takes most of the world’s strength to embrace it.”
An overnight shift to the new World Reserve will cause market disruption. Even gradual changes can wreak havoc in the US economy. “If the US loses its reserve currency, the political and economic impacts around the world will be significantly reduced,” Zheng said.
Rose agreed, emphasizing the need for the United States to establish itself as the leader of the New World Reserve.
On April 10, 2025, President Donald Trump signed the Carrie bill. This eliminated the Internal Revenue Service (IRS) digital assets sales and exchange rules. This is an important step as the rules required decentralized financial brokers to be filed with the IRS, just like other investment brokers do.