Could Bitcoin Replace the Dollar? BlackRock CEO Larry Fink Issues Clear Warning

YEREVAN (CoinChapter.com) — BlackRock CEO Larry Fink warned that Bitcoin might weaken the USD’s status as the global reserve currency. In his Annual Chairman’s Letter dated March 31, 2025, he stated that if investors continue to treat Bitcoin as an inflation hedge, it could create long-term problems for the US economy.

Fink pointed to rising debt levels as a risk.

“By 2030, mandatory government spending and debt service will consume all federal revenue,”

he wrote. This scenario could lead to a permanent deficit. If that happens, digital assets like Bitcoin could gain more trust than the USD.

His statement carries weight, as BlackRock is the largest Bitcoin ETF issuer in the United States. Fink has supported crypto for years, but in his recent letter, he highlighted possible consequences if the trend continues.

Larry Fink Supports Tokenization But Highlights Risk

Despite warning about the USD, the BlackRock CEO recognized that crypto brings structural advantages. He mentioned tokenization as a key improvement for the TradFi system. According to Fink, digital-native infrastructure could improve financial access and reduce barriers.

He also pointed out that decentralized finance helps markets become faster and more transparent. However, he cautioned that the same tools could destabilize the country’s financial strength if too many people turn to Bitcoin.

“If a wide swath of investors think Bitcoin is more stable than the dollar, it would threaten USD’s status,”

Fink noted. That shift, he said, could harm not just TradFi, but also the broader crypto ecosystem.

Crypto Use as Inflation Hedge Raises Global Questions

Fink acknowledged that using Bitcoin as an inflation hedge is common. But if enough investors choose crypto over the dollar, it could shift global financial behavior. That concern is not limited to BlackRock, as other leaders also follow these developments.

He described decentralized finance as a strong market force but warned that it could change the balance of economic power. Though Fink offered no direct solution, his message reflected concern over the pace of adoption without oversight.

Fink’s words follow a recent statement by Donald Trump, who said that stablecoins could support the dollar’s dominance. Trump suggested that USD-backed stablecoins might help protect its influence in a growing digital economy.

Fink did not respond directly to Trump’s remarks. However, he repeated that digital assets such as Bitcoin offer clear benefits. He closed his letter by saying those benefits remain significant, even as risks grow.