The world's largest hedge fund expects the US dollar to lose its status as a reserve currency
Larry Fink, the CEO of BlackRock Inc. (NYSE:BLK), pointed to the growing US national debt and the potential of digital assets like Bitcoin to undermine the US dollar's status as a reserve currency. In his annual letter to investors, Fink highlighted the rapid pace of national debt growth, warning that if the United States does not control its debt and deficit, digital assets could become a safer bet than the dollar.
"If the United States does not control its debt, and if the deficit continues to inflate, America risks losing that status in favor of digital assets like Bitcoin," Fink stated.
Fink emphasized the innovation of decentralized finance and the transformative potential of tokenization in the financial industry. He explained that tokenization, which converts real assets into digital tokens that can be traded online, can make markets faster and more accessible, allowing for fractional ownership and more democratic investment processes.
The CEO of the world's largest asset manager also stressed the need for digital identity verification systems to support asset tokenization. He cited the example of India, where over 90% of citizens can securely verify transactions directly from their smartphones,
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