“The US risks losing the economic advantage of the dollar due to Bitcoin – BlackRockBlackRock CEO Larry Fink warned that the US could lose the dollar’s advantage over Bitcoin if it does not control its national debt. Tokenized funds will be as popular as ETFs.”, — write: unn.ua
DetailsCurrently, BlackRock’s iShares Bitcoin Trust owns nearly $50 billion in assets, and its tokenized BUIDL fund is on track to become the largest in the market. Its assets are expected to exceed $2 billion in April.
A big fan of digital assets, BlackRock CEO Larry Fink said he is not closing his eyes to the possible risks to the US from the growing popularity of Bitcoin (BTC).
The United States has benefited from the dollar serving as the world’s reserve currency for decades. But this is not guaranteed to last forever. If the US does not get its debt under control, if the deficit continues to grow, America risks losing this position to digital assets such as Bitcoin,
“I am obviously not against digital assets. But two things can be true at the same time: decentralized finance is an extraordinary innovation. It makes markets faster, cheaper and more transparent. However, the same innovation could undermine America’s economic advantage if investors start to see Bitcoin as a safer bet than the dollar,” he added.
Fink’s letter came at a time of high market uncertainty and anxiety among investors about the economic state of the US amid policy changes introduced by Trump. To balance the national deficit, Fink said, investors should diversify their portfolios to add private market assets in addition to stocks and bonds.
Fink also emphasized that tokenized funds will be as well known among investors as exchange-traded funds (ETFs), provided the industry can create a better infrastructure for digital identities. This, he believes, is an obstacle for institutional investors to fully embrace decentralized finance.
“Every share, every bond, every fund, every asset can be tokenized. This will revolutionize investing. If we are serious about building an efficient and accessible financial system, simply supporting tokenization will not be enough. We must also solve the problem of digital verification,” Fink wrote.
Earlier
UNN wrote that Bitcoin is predicted to grow unprecedentedly. On January 9, the most popular cryptocurrency, Bitcoin, reached its highest value since November last year – the value of one “bitcoin” exceeded the mark of 47 thousand dollars. And this, according to analysts, is not the limit.