Blackrock CEO Says Russia-Ukraine War could Impact Digital Currency Adoption

Blackrock CEO Says Russia-Ukraine War could Impact Digital Currency Adoption

Crypto News
March 28, 2022 by Elias Powell
101
The largest asset manager in the world is Blackrock and its chief executive, believes that the conflict between Russia and Ukraine has the potential of speeding up the adoption of digital currencies. He also confirmed that his company was currently studying stablecoins, digital currencies, along with their underlying technologies for understanding how they can help
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The largest asset manager in the world is Blackrock and its chief executive, believes that the conflict between Russia and Ukraine has the potential of speeding up the adoption of digital currencies. He also confirmed that his company was currently studying stablecoins, digital currencies, along with their underlying technologies for understanding how they can help the asset manager in serving its clients. Larry Fink, the CEO of Blackrock, published his letter to shareholders for 2022 on Thursday and a section of it was dedicated to digital currencies. His company is the largest asset manager in the world, with assets under management worth (AUM) worth $10 trillion.

Fink said that Russia’s invasion of Ukraine had ended the globalization that has occurred in the last three decades. The CEO discussed the impact of the war extensively and noted that one aspect that was not being discussed was the potential of it accelerating cryptocurrencies. He said that countries would be forced to re-evaluate their dependencies on currencies. A number of well-reputed investors have already predicted that the war between Russia and Ukraine could risk the role of the US dollar as the reserve currency of the world. Jim Rogers, a veteran investor who had co-founded Quantum Fund, stated earlier this month that what was happening with Russia in terms of sanctions would end the US dollar.

A similar view was expressed by Bill Miller, the famous value investor. Mike Novogratz, the chief executive of Galaxy Digital, recently stated that we are now entering an unknown world and people would have to struggle for figuring out a reserve currency. The Blackrock boss also talked about the concept of central bank digital currencies (CBDCs). He said that even before the war had begun, a number of governments had been taking an interest in cryptocurrencies and defining a regulatory framework for the operation of digital currencies.

Fink also referred to the study of the Federal Reserve regarding the possible impact of the US digital dollar. Jerome Powell, the Chairman of the Federal Reserve, has stated repeatedly that the Fed will not issue a CBDC. Fink talked about some of the potential benefits of digital currencies. He said that a thoughtfully designed global digital payment system could enhance improve the process of settling transactions internationally, while reducing the chances of corruption and money laundering. He added that the cost of cross-border payments could also be reduced with digital currencies.

Fink said that Blackrock’s clients had shown increasing interest in crypto products, due to which they were also looking into it. Last year in July, the CEO had said that the company had seen little demand for crypto, but he had said in April that was fascinated with them and believed they could become a great asset class. He also stated that the US dollar would become less relevant because of bitcoin and could evolve into a global market. Regardless, he is still skeptical where cryptocurrencies are concerned and had indicated last year in October that he was thinking along the same lines as Jamie Dimon, the CEO of JPMorgan.

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