NEWSLETTER
The US dollar could lose its state as the world of world reserve to bitcoin or other digital assets if the United States does not have its debt under control, according to the Blackrock Larry Fink CEO.
Fink wrote in his annual letter of the president investors that “Decentralized Finance is an extraordinary innovation” that makes “the markets faster, cheaper and more transparent.” But “that same innovation could undermine the economic advantage of the United States if investors begin to see bitcoin as a safer bet than the dollar.”
According to the commercial economy, the United States debt equalized 122.3% of the country's gross domestic product in 2023. That is a considerably higher percentage than 105% observed in 2018. Moody's ratings delay The AAA credit qualification of the United States, but has reduced its perspective to negative, indicating a possible reduction of future qualification.
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The United States Joint Economic Committee wrote That until March 5, the country's gross national debt was $ 36.2 billion, growing $ 1.8 billion, or approximately $ 4.9 billion per day, during the past year and $ 12.8 billion in the last five years. The Bipartisan Policy Center warned This month that the United States could breach its debt already in July 2025.
bitcoin (btc) has been qualified as a safe refuge for investors who seek to avoid the dangers of fiduciary currency, including inflation. Some believe that the end of the suspension of the debt roof could lead to a bitcoin prices boom. Others think, as Fink has stated that the dangers of national debt could increase the adoption of bitcoin.
Related: bitcoin Reserve will not resolve the United States debt crisis: Think tank co -founder
In 2025, cryptocurrency has gained prominence as a class of assets due to the adoption of countries such as the United States and companies such as strategy. However, some argue that Stablecoins could, in fact, increase the domain of the US dollar.
Fink: Tokenization is democratization
In the letter, Fink says that “tokenization is democratization” with technological innovation “that allows instant purchase, sale and transfer without cumbersome paperwork or waiting periods.”
If each asset ends up being tokenized, Fink said: “It will revolutionize the investment. The markets would not need to close. The transactions that currently take days in seconds. And billions of dollars currently immobilized by delays in the agreements could be reinveyed immediately in the economy, generating more growth.”
Related: The centralization and the dark side of asset token – Mexc Exec
Tokenization democratizes access, vote of shareholders and performance, Fink wrote. According For Rwa.XYZ, the active market market token, amounts to $ 19.6 billion. There are currently around 93,000 assets holders, with 174 emitters. Industry projections indicate that the market could reach $ 4 billion to $ 30 billion by 2030.
Buidl World Tokenized Founder of Blackrock in the real world is currently the largest background available for trade, with the Benji funds of Tether Gold and Franklin Templeton in second and third place, respectively.
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