The status of the US dollar as the world’s reserve currency is under threat, BlackRock CEO Larry Fink stated in his annual letter to investors.

According to him, the uncontrolled growth of US debt and budget deficits could lead to the loss of this position in favor of digital assets like Bitcoin.

The national debt has been growing three times faster than GDP since the launch of the debt clock in Times Square in 1989, the expert noted.

In 2024, US government spending on debt servicing exceeded $952 billion, surpassing defense expenditures. If the situation does not change, by 2030, mandatory government payments and interest expenses will fully consume federal revenues, leading to a persistent deficit.

Despite the risks, decentralized financial systems provide markets with speed, transparency, and accessibility, Fink emphasized. However, the growing trust in Bitcoin could weaken the dollar’s position, undermining the US’s economic advantage.

The BlackRock CEO also spoke about the potential of asset tokenization, comparing the technology to the shift from paper letters to email. Through tokenization, stocks, bonds, and real estate can be digitized, making investments more accessible, accelerating transactions, and eliminating delays between purchases and settlements.

According to Fink, this technology simplifies asset ownership, enables fractionalization, and expands access to high-yield investments. It could revolutionize financial markets by increasing participation from less affluent investors.

Earlier, on January 22, the BlackRock chief outlined the condition under which Bitcoin could reach $700,000. This would require investors across all categories—from retail to institutional—to allocate 2% to 5% of their portfolios to the leading cryptocurrency.