dollar

BlackRock CEO: Bitcoin and cryptocurrencies may undermine the international status of the US dollar

ChainCatcher news, according to Beincrypto, BlackRock CEO Larry Fink claimed in a recent letter that Bitcoin and cryptocurrencies could undermine the international status of the dollar. If investors view Bitcoin as a hedge against dollar inflation, this could lead to serious issues. However, he also insisted that the industry has many advantages, particularly through tokenization.Larry Fink stated that the best interests of cryptocurrencies do not always align with traditional finance (TradFi) or the dollar. He said, "For decades, the U.S. has benefited from the dollar's status as the global reserve currency. But that does not guarantee it will always be so. By 2030, mandatory government spending and debt servicing will consume all federal revenue, leading to a permanent deficit. If the U.S. cannot control its debt... it could potentially relinquish this status to digital assets like Bitcoin."It is important to clarify that Fink insists he supports cryptocurrencies and listed several real problems he believes cryptocurrencies can solve. He expressed particular interest in asset tokenization, claiming that digital-native infrastructure will improve and democratize the traditional financial ecosystem. Despite these advantages of cryptocurrencies, Fink also acknowledged that if mismanaged, cryptocurrencies could pose dangers to the U.S. economy. He discussed the long-standing practice of using cryptocurrencies to hedge against inflation, which is a prudent approach for many assets.
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