Blackrock's CEO had some interesting observations on National Debt and Bitcoin
BlackRock CEO Larry Fink warned that the U.S. dollar faces potential loss of its reserve currency status to Bitcoin and other digital assets.
He emphasized in his annual letter that the dollar's advantageous position is not guaranteed as the national debt has surged.
Fink stated that by 2030, mandatory spending could consume all federal revenues. He added that if debt issues aren't resolved, investors might view Bitcoin as a "safer bet." (BlackRock has significant investments in Bitcoin exchange-traded funds (ETFs), holding about $48 billion in assets).
While decentralized finance is an "extraordinary innovation" that makes markets faster, cheaper, and transparent, it could undermine America's economic advantage if investors begin seeing Bitcoin as a "safer bet" than the USD, warned Fink.
Fink also highlighted the success of BlackRock's Bitcoin exchange-traded funds (ETFs). A spot Bitcoin ETF is an investment fund that tracks the price of Bitcoin. Its shares are traded on traditional stock exchanges.
(BlackRock is not only the world's largest asset manager but is also the largest issuer of spot Bitcoin ETFs. As of March 28, BlackRock's spot Bitcoin ETFs held $48 billion in assets under management)
IMHO banks and their services will be evolving in the years to come...
I counted how many stablecoins are currently issued, there are 56 !
Including issuers such as PayPal, Bank of America, JP Morgan, Societe Generale, Stripe, etc
Currently, the issuers of stable coins collectively are the 18th largest holder of US debt (and growing fast). It's possible that in a few years they will collectively be the largest holder of government bonds of all countries.
Innovators are now deploying US treasuries as tokenized assets on blockchains so you can buy fractions of them and trade them and realize the interest payments that are paid to the treasuries.
There's hundreds of projects to tokenize "real world assets," from real estate to intangibles like royalty rights.
Crazy digital times ahead !
= new reply since forum marked as read
