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

PANews reported on April 1st, according to Beincrypto, that Larry Fink, CEO of BlackRock, claimed in a recent letter that Bitcoin and cryptocurrencies could potentially harm the international status of the US dollar. If investors view Bitcoin as a hedge against US dollar inflation, it could lead to serious problems. However, he also insisted that the industry has many advantages, especially through tokenization.

Larry Fink stated that the best interests of cryptocurrency are not always consistent with traditional finance (TradFi) or the US dollar. He said: "For decades, the United States has benefited from the status of the US dollar as a global reserve currency. But this cannot be guaranteed forever. By 2030, mandatory government spending and debt repayment will consume all federal revenue leading to permanent deficits. If America can't control its debt...it may give up this position to digital assets like Bitcoin."

It should be clarified that Fink insists he supports cryptocurrency and lists some practical issues he believes cryptocurrency can solve. He showed particular interest in asset tokenization claiming digital native infrastructure will improve traditional financial ecosystems and democratize them. Despite these advantages of cryptocurrencies,Fink also recognizes if mismanaged,cryptocurrencies could pose dangers for American economy.He discussed long-standing practice using cryptocurrencies as hedges against inflation which is wise move for many assets.