Blackrock CEO Larry Fink said in a recent letter that Bitcoin and Crypto can undermine the international position of the dollar. If investors treat the BTC as a dollar inflation protection, it can cause serious problems.

However, he was also emphatic in stating that the industry offers many advantages, especially through tokenization.

Larry Fink sees opportunities in crypto

Blackrock is a Bitcoin ETF station in the US, and its Larry Fink CEO has long been optimistic about Bitcoin. However, as he described in his latest President’s annual letter In investors, the interests of crypto do not always align with the tradfi or the dollar.

The US has benefited from the dollar serving as a world reserve currency for decades. But this is not guaranteed forever. By 2030, mandatory government spending and debt service will consume the entire IRS, creating a permanent deficit. If the US does not control its debt… America is in danger of losing this position to digital assets like Bitcoin, he said.

To be clear, Fink has insisted that he supports crypto and listed some practical problems that he believes she can solve. He expressed a particular interest in active tokenization, stating that native digital infrastructure would improve and democratize the Tradfi ecosystem.

Despite these advantages, Fink acknowledges the danger that crypto can pose for the US economy if not properly managed. He addressed longtime practice to use crypto to protect himself against inflation, a wise practice for many assets.

However, if most investors think Bitcoin is more stable than the dollar, it would threaten the dollar status as a world reserve currency. Such a scenario would be very dangerous for the whole tradfi. Such an event would undoubtedly impact crypto as well.

The decentralized finance is an extraordinary innovation. It makes markets faster, cheaper and transparent. However, this same innovation could undermine America’s economic advantage if investors begin to see Bitcoin as a safer bet than the dollar, Fink added.

He has not offered many specific solutions to this growing problem, but is not the only person concerned about the issue either. President Donald Trump recently suggested that StableCoins could promote the dominance of the dollar worldwide. Even if the dollar is seen as unstable, its adoption in a rapidly growing global industry like StableCoins could help reinforce its strength and relevance.

Of course, there are also disadvantages on Trump’s plan. Larry Fink has recognized a possible threat from crypto, but continues to defend his usefulness. Its benefits are too good to ignore.