According to the CEO of the world’s greatest Asset Management, Blackrock, The confrontation of Russia and Ukraine has a potential effect on accelerating digital money. “We’re analyzing digital currencies, stablecoins, and the hidden technology to understand how they may help us serve our customers,” he said.
Blackrock, On The Growth of Digital Money
Larry Fink, the Central Executive Officer of Blackrock, released his letter of 202 to investors on Thursday, which included a section on digital money. Blackrock is the world’s biggest asset organizer, with more than $10 trillion.
“The Russian attack on Ukraine has put a stop to the three decades of development that we have enjoyed,” Fink wrote. Following a lengthy discussion of the war’s effects, the CEO stated:
“an underappreciated component of the conflict is its possible impact on rapidly increasing digital currency. Countries would re-evaluate their currency reliance as a result of the war.’
Many financial backers have warned that the conflict between Russia and Ukraine might threaten the dollar’s status as the world’s reserve currency.
According to veteran investor Jim Rogers, who co-founded the Quantum Fund with multimillionaire George Soros, the end of the US currency is happening with Russia and its punishments. Bill Miller, a well-known value investor, holds a similar viewpoint.
“We are entering an unfamiliar environment where people will struggle to figure out what is the reserve currency,” Galaxy Digital CEO Mike Novogratz recently stated.
The Blackrock CEO then moved on to talk about central bank digital currency (CBDCs). “Several governments were aiming to play a more active role in digital currencies and define the legislative frameworks under which they function even before the war,” he noted. Fink then referred to a Federal Reserve study on the digital dollar’s possible impact. Chairman of the Federal Reserve, Jerome Powell, has stated repeatedly that the Fed has not determined whether or not to issue a CBDC.
Fink explained some of the advantages that digital currency could provide. “A well constructed global digital payment system can improve the processing of international transactions while decreasing the danger of money laundering and corruption,” he explained. “Digital currencies can also assist lower the cost of cross-border payments, such as when expatriates send money home to their relatives.”
“As we observe rising interest from our clients, Blackrock is examining digital currencies, stablecoins, and the underlying technology to understand how they may help us serve our clients,” Fink said of whether Blackrock will start offering crypto products and services to clients.
In July of the last year, the CEO stated that Blackrock’s clients showed minimal interest in cryptocurrency.
Fink, on the other hand, stated in April of last year that cryptocurrency fascinates him and that it has the potential to become a “wonderful asset class.” He also stated that bitcoin renders the US currency obsolete and that it has the potential to develop into a worldwide market.
Despite this, he remained dubious of cryptocurrency. Last October, the Blackrock executive stated that he agreed with JPMorgan CEO Jamie Dimon when he remarked that bitcoin is useless.