BlackRock CEO Larry Fink Sees Bitcoin Challenging US Dollar as Global Reserve Currency
The world’s largest asset management company, BlackRock, CEO Larry Fink recently pointed out in his annual letter to investors for 2025 that Bitcoin is expected to challenge the US dollar’s status as the global reserve currency. He also praised the potential revolutionary changes that tokenization could bring to the functioning of capital markets, stating that “tokenization is democratization.”
(Background: BlackRock: Bitcoin is not a risky asset; its positioning as digital gold will become increasingly clear)
(Context: BlackRock CEO: Bitcoin is a safe-haven asset amid global pessimism; institutional investment could accelerate towards $700,000)
Bitcoin as a Disruptive Technological Innovation
In his letter, Larry Fink stated that Bitcoin, as a disruptive technological innovation, could challenge the US dollar’s status as the global reserve currency if the US government fails to control its massive debt and fiscal deficit:
If US debt remains uncontrolled and the fiscal deficit continues to expand, the dollar could potentially be replaced by digital assets like Bitcoin.
Beyond Speculative Asset Attributes
Throughout the letter, Larry Fink mentioned Bitcoin multiple times, emphasizing that it has now transcended its speculative asset attributes and is becoming a means of value storage, while also being regarded as a risk-hedging tool. In recent years, institutional investors have been discussing the use of Bitcoin as insurance against currency devaluation and geopolitical conflicts.
To illustrate the development and adoption of Bitcoin, Larry Fink referred to BlackRock’s Bitcoin spot ETF launched last year, noting that the company’s Bitcoin ETF surpassed $50 billion in assets under management within its first year, ranking third in net asset inflows among all ETF products.
He also emphasized that retail demand has shown remarkable strength, with over half of the adoption of BlackRock’s Bitcoin ETF products coming from retail investors, three-quarters of whom are emerging investors who had previously not invested in the company’s products.
Tokenization is Democratization
This letter from Larry Fink is titled “Democratization of Investment,” and within it, he directly states that “tokenization is democratization.” He emphasizes that the emergence of tokenization signifies a fundamental change in the rules of the capital markets:
Tokenization means a fundamental change in asset ownership; every stock, every bond, every fund—every asset can be tokenized. This will completely change the way investments are made. The market no longer needs to be closed; transactions that currently take days to complete can be executed in seconds through tokenization, thus quickly reallocating billions of dollars that were previously rendered unusable due to delays, enabling faster growth.
Perhaps most importantly, tokenization will democratize investment, allowing assets to be subdivided into smaller units to increase accessibility to investments; it will also democratize shareholder voting, as all data will be transparent and traceable; tokenization can also democratize returns, avoiding bureaucratic and legal issues, allowing investors to achieve more substantial potential returns.
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