Larry Fink, CEO of investment management firm BlackRock, says the ongoing war between Russia and Ukraine will prompt other countries to re-analyze their reliance on traditional payments infrastructure and Fiat currency.
Changing the heart of CEO BlackRock
In a letter to BlackRock shareholders, the moderator weighed in on the potential impacts of the invasion and noted that it would spur digital asset adoption. The United Kingdom, Singapore, Indonesia, and Canada have used to regulate digital assets while others such as the US, Pakistan, and Brazil have proposed to regulate rather than impose an outright ban.
However, some countries have begun to play a more active role in the cryptocurrency sector, which started even before the outbreak of war. However, Fink believes that the global economic scenario could spur a payment system that includes digital currencies.
The NYC-based giant’s CEO added that a carefully planned global digital payment system could improve the settlement of international transactions while minimizing risks related to money laundering and corruption. He even claimed that digital currency could cut the cost of cross-border payments.
“A thoughtfully designed, global digital payments system can enhance the settlement of international transactions while reducing the risk of money laundering and corruption. Digital currencies can also help reduce the cost of cross-border payments, such as when foreign workers send income back to their families.”
In response to growing customer interest, BlackRock is also exploring digital currencies, stablecoins, and underlying technologies.
Fink has not previously been a heavy critic of the crypto industry but remains uncertain about how Bitcoin will play out in the long term. Despite expressing his passion for the space, the former moderator has pitched himself as the preferr of JPMorgan Chase’s Jamie Dimon camp, who has called Bitcoin “worthless.”
BlackRock’s Cryptocurrency Trading Service
As previously reported, the world’s largest asset manager is planning to launch crypto trading services. The key is to enter the digital asset space with “customer-supported transactions and then their own credit facility.” BlackRock further revealed that that would allow market players to borrow from the company by offering crypto as collateral.
Last year, the investment giant reported a $360k Bitcoin gain after buying futures contracts through the Chicago Mercantile Exchange (CME).