Ukraine war has potential to accelerate digital currency adoption: BlackRock CEO Larry Fink

Larry Fink, president and CEO of US-based multinational investment management corporation BlackRock, has said the war in Ukraine has the potential to accelerate the use of digital currencies. He further explained that crypto could become a widely used tool for settling international transactions. In a letter to investors, Fink highlighted the implications of the Russian invasion of Ukraine for companies, countries and customers, as well as the impact of the war on energy sources. Fink also said that BlackRock was already studying digital currencies and stable coins due to increased customer interest.

“The war will prompt countries to re-evaluate their currency dependence,” wrote Fink. In your letter to investors, adding that some were already looking to take a more active role in digital currencies even before the war began. As an example, he pointed to the study of the US Federal Reserve, which found that a . had the effect of Central Bank Digital Currency (CBDC),

“A global digital payments system, designed with care, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption,” Fink said, “as well as reduce the cost of cross-border transactions.” Is.

“As we see increasing interest from our customers, BlackRock is studying digital currencies, stable coins and the underlying technologies to understand how they can help us serve our customers,” he wrote. What’s worth noting about Fink this time around is the growing interest in crypto from BlackRock’s customers. let’s talk which is the opposite of what he said in a CNBC Interview Last July – “We see very little demand for those [crypto] sorts of things.”

BlackRock is reportedly planning to offer crypto trading to its investors. In December 2020, Fink reported that increasing interest in bitcoin could be a sign that cryptocurrency will gain its place in the global financial system and last year the company bought Bitcoin Promise.

In the letter, Fink said the war would accelerate some of the trends already brought on by the pandemic when it comes to how nations are connected to the global economy. “Russian Invasion” Ukraine The globalization we experienced in the last three decades has ended,” he said.

The Speaker argued that the shift to energy sources around the world due to war would slow the progress towards zero net emissions in the short term, eventually accelerating the transition to green energy sources. According to Fink, the current crisis will prompt countries to come up with solutions that will secure their access to energy. For many, this will mean investing in wind and solar power.

The head of the investment group also noted that BlackRock had joined other companies in freeing Russia from its portfolio, although the company did not initially have significant investments in the country.

Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.

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