There is a scenario in which the dollar it is no longer a reference currency at a global level and has lost its role as a reserve currency. A scenario that is not so far from the future that is being built. The warning came from Larry Finkone of the most skilled financiers of Wall Street, CEO of the investment company Blackrockon the occasion of the traditional annual letter to shareholders. The warning arrives near April 2, the day that Trump himself baptized Liberation Day, when we expect a new wave of duties against all the US partners.
The dollar supplanted by Bitcoin
Citing protectionism and its disastrous effects on the economy, the financier observed that “there is more concern than never” for the economy and that it Dollar status as a reserve currency worldwide “It is not guaranteed forever ”. If the United States” do not keep their debt under control, if the deficits continue to grow ” – Fink warned – the dollar” risks losing that position in favor of digital assets, Like the Queen of Cryptocurrencies “(Bitcoin).
“The debt has grown at a rhythm three times higher than that of GDP,” said the financier, remembering that this year “interests will exceed 952 billion dollars, exceeding the expenses for the defense”.
The loss of centrality of the US dollar in favor of digital assets – he added – implies that “The economic advantage of the United States could vanish.”
The “democratization” of investments
Fink has not only spoken of US and dollar economy, but also mentioned topics relating to investments, proposing a sort of “Democratization” of the marketwhich allows the greatest number of people to invest in high performance products, having access to private investments and not only to liquid assets.
In this regard, Blackrock CEO recalled that at the opening of the Amsterdam bag in 1602 – the first of the story – The most of the first 1,143 investors was represented by rich (90%), but there was also a small representation (10%) of small investorssuch as craftsmen, traders and even two servants who had invested their few savings. Fink reiterated that a management company like Blackrock must contact these people and said that “the solution is not to abandon the markets but expand them. More investments, more investors: this is the answer”.
The key role of ETFs for Europe
And speaking precisely of a more “democratic” financethe Blackrock CEO indirectly underlined the Key role of ETFs (Exchange Traded Funds), explaining that the funds “are favoring the growth of the Investment culture in Europe“, Where only a third of the retail investors invest in the capital markets against over 60% of the US ones. This means – he said – that” not only are the Europeans not participating in the performance potential offered by the markets, but are also losing opportunities for real returns when the low rates of bank deposits are outclassed by inflation “.
Blackrock, with a maxi ETF platform of 1,000 billion masses – recalled Fink – sta working actively with small banks and Fintech, Just entered the market, such as Monzo, N26, Revolut, Scalable Capital and Trade Republic, to lower investment barrier and create a financial culture in local markets.
