Larry Fink Warns US Debt Could Undermine the Dollar

BlackRock CEO Larry Fink has sparked debate about the future of the US dollar after warning that rising debt interest payments could weaken confidence in the currency. Speaking on February 10, 2026, Fink said that if the US fails to control its debt costs, the dollar could eventually resemble “monopoly money.”

His comments arrive at a key moment for the US economy. Federal debt has climbed to roughly $38 trillion, based on recent US Treasury data. At the same time, the government now spends about 20% of its federal budget on interest payments alone. That figure has grown sharply over the past few years as higher interest rates increased borrowing costs.

Debt Costs Are Eating Into the Dollar Budget

The US government continues to borrow heavily to fund its operations. However, rising interest rates have made that borrowing more expensive. As a result, debt servicing now takes up a great share of annual spending.

When the government directs one-fifth of its budget toward interest payments, it leaves less room for infrastructure, healthcare, education and national security. Over time, this imbalance can strain public finances and weaken economic flexibility. Fink stressed that policymakers must address this trend before it undermines global trust in the dollar.

He warned that if leaders allow debt payments to spiral, investors may question the long-term stability of US fiscal policy. That loss of confidence could reduce demand for the dollar in global markets.

Investors Look Toward Hard Assets

Fink also pointed to “long-term assets” as a potential safeguard if fiat currencies face pressure. Historically, investors have turned to gold and other precious metals during times of economic uncertainty. In recent years, many have also accepted Bitcoin as a hedge against inflation and currency debasement.

Supporters of digital assets argue that Bitcoin’s fixed supply makes it resistant to the kind of monetary expansion that can weaken traditional currencies. Fink’s remarks have therefore fueled discussion within the crypto community, which often frames Bitcoin as protection against sovereign debt risk.

The Dollar’s Global Role Remains Strong

Despite these concerns, the US dollar still dominates global trade and finance. Central banks hold it as a primary reserve currency, and international markets depend on it for pricing commodities and settling transactions.

Even so, Larry Fink’s warning adds urgency to the broader debate over fiscal discipline and long-term sustainability. While the dollar’s position remains safe for now, rising debt levels continue to test the resilience of the world’s leading reserve currency.