"Decentralized finance (DeFi) is a game changer that is making markets faster, cheaper and more transparent," CEO Larry Fink said in his annual shareholder letter on the 31st (local time).
However, he noted that "if investors begin to view Bitcoin as a safer asset than the dollar, this innovation could weaken the dominance of the U.S. economy."
According to Trading Economics, U.S. debt will reach 122.3% of gross domestic product (GDP) in 2023, a significant increase from 105% in 2018.
Moody's still maintains the U.S.'s AAA rating but adjusted its outlook to "negative," signaling a possible downgrade in the future.
According to the United States Joint Economic Committee, as of March 5, 2024, the total national debt of the United States will reach $36.2 trillion, with $1.8 trillion (1 day) of debt increasing in the last year alone.
The Bipartisan Policy Center warned that the United States could face a default by July 2025.
Bitcoin is seen as a "safe haven" for investors who want to avoid the risks of fiat currencies, such as inflation.
Some believe the end of the US government debt ceiling moratorium could help drive up Bitcoin prices, with CEO Fink also saying the national debt crisis could lead to increased adoption of Bitcoin.
In the letter, CEO Fink emphasized that “tokenization is the democratization of finance” and that “this technological innovation enables instant buying, selling, and transfers without complex paperwork or latency.”
"If all assets were tokenized, it would revolutionize financial markets. Markets would no longer have to close their doors, and transactions that currently take days would be completed in just seconds," he said.
"Billions of dollars that would have been tied up in delayed payments can be immediately reinvested in the economy to drive greater growth," he added.
2025/04/01 11:11 KST
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