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BlackRock CEO: Bitcoin Might Dethrone US Dollar as Global Reserve Currency

BlackRock's Outlook 2025 called Bitcoin "a tactical hedge against specific risks, like gold." Larry Fink, the CEO of the world's largest asset manager, who had once labeled Bitcoin as an "index of money laundering," experienced a notable change of heart last year amid inflationary pressures and the volatility of traditional markets.

America’s mounting national debt, which is currently at $36 trillion, could prompt investors to start viewing the digital currency as a safer bet, Larry Fink has warned.

“If deficits keep ballooning, America risks losing that position to digital assets like Bitcoin,” he stressed in his annual letter to investors.

Screenshot of a chart showing US federal debt in an annual letter to investors by BlackRock CEO Larry Fink on March 31, 2025.

Mandatory government spending and debt service will consume all federal revenue, creating a permanent deficit by 2030, Fink added.

Initially, Fink was a skeptic, often dismissing Bitcoin as a speculative asset and referring to it as a "fad." However, he gradually became more open to the idea of digital assets. In January 2024, BlackRock introduced the iShares Bitcoin Trust (IBIT), a Bitcoin ETF that swiftly emerged as the largest cryptocurrency fund globally.

BlackRock's Outlook 2025 referred to Bitcoin as "a tactical hedge against specific risks, like gold" amid "geopolitical fragmentation" of the world into competing blocs.