BlackRock's Larry Fink points out risks for dollar's prominence posed by bitcoin

BlackRock CEO Larry Fink, a well-known supporter of cryptocurrencies and other digital instruments, warned about a possible threat posed by the spread of bitcoin to the US currency. According to the expert, if the issue related to the US government debt and budget deficit is not settled, the dollar may lose its prominence as the main reserve currency under the pressure of digital assets' popularity, primarily bitcoin.

As the expert stated, decentralized finance offers essential innovation for the sphere as it makes the markets work more quickly, efficiently and transparently. However, the same digital innovations would become a threat to the dollar's position and the US economic advantage if market participants start considering bitcoin as a safer instrument.

Fink's statement came amid growing market uncertainty and increasing investor concerns about the country's economic health given the backdrop of US President Donald Trump's policy moves. According to Fink, to balance risks, investors should diversify their portfolios by adding private market assets in addition to stocks and bonds.