According to ChainCatcher, citing Beincrypto, BlackRock CEO Larry Fink claimed in a recent letter that Bitcoin and cryptocurrencies might harm the international status of the US dollar. If investors view Bitcoin as a hedge against dollar inflation, this could trigger serious problems. However, he also firmly stated that the industry has many advantages, especially through tokenization.

Larry Fink stated that the best interests of cryptocurrencies are not always aligned with traditional finance (TradFi) or the US dollar. He said: "For decades, the United States has benefited from the dollar's status as a global reserve currency. But this does not guarantee it will remain so forever. By 2030, mandatory government spending and debt payments will exhaust all federal revenue, leading to a permanent deficit. If the United States cannot control its debt... the US may potentially cede this status to digital assets like Bitcoin."

It needs to be clarified that Fink firmly maintains his support for cryptocurrencies and lists some practical problems he believes cryptocurrencies can solve. He showed particular interest in asset tokenization, claiming that digital native infrastructure will improve and democratize the traditional financial ecosystem. Despite these advantages of cryptocurrencies, Fink also recognizes that if mismanaged, cryptocurrencies could pose a danger to the US economy. He discussed the long-standing practice of using cryptocurrencies to hedge against inflation, which is considered a wise approach for many assets.