Larry Fink warns America’s $36T+ debt could topple the dollar’s reserve status, with Bitcoin emerging as potential replacement.

BlackRock CEO Larry Fink has rung the alarm on America’s untenable national debt and said it could eventually topple the U.S. dollar as the world’s reserve currency – with Bitcoin emerging as a potential successor. The startling prediction comes as the U.S. national debt surpasses $36.2 trillion, growing at triple the rate of GDP since 1989.

In his 2025 shareholder letter, Fink laid out a troubling economic trajectory. “This year alone, interest payments will hit $952 billion – more than our entire defense budget,” he wrote. “By 2030, mandatory spending and debt servicing will consume all federal revenue, creating a permanent deficit cycle.” The consequences could be historic: “If we fail to control this debt spiral, we risk losing our financial primacy to decentralized assets like Bitcoin.”

The dollar’s reserve status has given America tremendous economic benefits for decades. It allows cheaper borrowing, cushions against currency fluctuations, and gives the U.S. unmatched financial influence globally. About 59% of all foreign reserves are held in dollar-denominated assets, primarily Treasury bonds.

But this system depends entirely on global confidence in U.S. fiscal responsibility. Fink warns that as debt grows increasingly unmanageable, foreign governments and institutional investors may seek alternatives. “When creditors lose faith in Treasury bonds, they’ll look for assets outside any single nation’s control,” he noted. “Bitcoin’s fixed supply and decentralized nature make it a prime candidate.”

Fink was careful to clarify his position: “Make no mistake – decentralized finance represents remarkable innovation. It creates more efficient, transparent markets. But that same innovation could undermine America’s economic dominance if Bitcoin becomes the preferred reserve asset.”

The BlackRock chief isn’t alone in his concerns. Bridgewater Associates founder Ray Dalio recently declared the debt crisis “imminent” during a speech in Singapore. “We’re facing a severe supply-demand imbalance in Treasury markets,” Dalio warned. “History shows what happens next – debt restructurings, political pressure on allies to buy bonds, even monetization of debt.”

Dalio pointed to historical precedents: “Every dominant reserve currency eventually loses its status. The patterns are clear to those who study economic history. The coming shifts will surprise many, but they shouldn’t – we’ve seen this story before.”

Market analysts note several factors strengthening Bitcoin’s case as a potential reserve asset: its fixed 21 million supply cap, global accessibility, and resistance to inflation. Unlike fiat currencies, no government can dilute Bitcoin’s value through excessive printing.

The implications of such a switch would be profound. A weaker dollar may shrink U.S. geopolitical power, upend global trading routes and even speed up the development of central bank digital currencies. It might also force a reevaluation of the entire international monetary system.

While Fink stopped short of predicting Bitcoin’s inevitable rise to reserve status, his stark warning highlights growing institutional recognition of cryptocurrency‘s potential role in the global financial architecture. As debt concerns mount, Bitcoin’s appeal as an alternative store of value appears to be gaining serious consideration at the highest levels of finance.

The debate touches on fundamental questions about money, sovereignty, and economic power in the digital age. With debt projections worsening and alternatives emerging, the dollar’s century-long dominance may face its most serious challenge yet. Investors and policymakers alike are watching closely as these economic forces continue to evolve.