The CEO of the world’s largest asset manager, Blackrock, says the Russia-Ukraine war has a “potential impact on accelerating digital currencies.” He confirms that Blackrock “is studying digital currencies, stablecoins and the underlying technologies to understand how they can help us serve our clients.”
Blackrock’s Acceleration of Digital Currencies
Blackrock CEO Larry Fink released his 2022 letter Thursday to shareholders with a section about digital currencies. Blackrock is the world’s largest asset manager, overseeing more than $10 trillion.
“The Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades,” Fink wrote. The CEO made the following observation after a thorough discussion about the effects of war:
The potential effect of accelerating digital currencies is a less well-known aspect to the war. Countries will need to reconsider their dependence on foreign currencies as a result of the war.
Several renowned investors have predicted that the Russia-Ukraine war could risk the U.S. dollar’s role as the world’s reserve currency. Jim Rogers, a veteran investor who founded the Quantum Fund along with George Soros and was a billionaire investor, stated that what’s happening to the U.S. Dollar is the end. Bill Miller is a respected value investor who shares the same view. Galaxy Digital CEO Mike Novogratz recently described, “We are entering a world that’s unknown where people are going to struggle to figure out what is the reserve currency.”
Blackrock’s boss began to talk about central bank digital currencies. “Even before the war, several governments were looking to play a more active role in digital currencies and define the regulatory frameworks under which they operate,” he pointed out. Fink then referenced the Federal Reserve’s study on the potential impact of the U.S. digital dollar. Federal Reserve Chairman Jerome Powell repeatedly stated that it is not yet decided whether to issue CBDC.
Fink described the potential benefits of digital currencies. “A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption,” he detailed. “Digital currencies can also help bring down costs of cross-border payments, for example when expatriate workers send earnings back to their families.”
Fink stated that Blackrock may offer crypto services and products to its clients if it decides:
Blackrock has been observing increasing client interest in digital currencies and stablecoins to better understand their potential benefits for us.
Blackrock’s CEO indicated that there was very little interest from customers for crypto currencies in July 2013.
However, Fink said in April last year that he is fascinated by cryptocurrency and believes it could become a “great asset class.” He also said that bitcoin makes the U.S. dollar less relevant and can evolve into a global market.
He was still skeptical of crypto. Blackrock’s CEO indicated in October that he was similar to Jamie Dimon, JPMorgan’s CEO who stated bitcoin has no value.
What do you think about Larry Fink’s comments? Comment below to let us know your thoughts about Larry Fink’s comments.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.