BlackRock’s Larry Fink: Russia-Ukraine Situation Could Be Good For Crypto
The Chief Executive of investment management giant BlackRock believes that current geopolitical situation between Russia and Ukraine drive other countries to re-evaluate their dependencies on traditional payment infrastructure and fiat currencies.
Larry Fink wrote a letter to BlackRock’s shareholders,’ discussing the potential impacts of the Russia-Ukraine situation and noted that it would be a booster for crypto the adoption.
Many countries have already started to play a more active role in the crypto space, something that started even before the war’s outbreak. However, the BlackRock CEO sees that the global economic scenario could push towards a payment system that includes digital currencies.
Fink wrote that a carefully planned global digital payment system could revamp the settlement of international transactions while mitigating the risk associated with money laundering and corruption.
He also believes that digital currencies could cut down costs of cross-border payments.
“A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption. Digital currencies can also help bring down costs of cross-border payments, for example when expatriate workers send earnings back to their families.”
Due to the growing interest of BlackRock’s clientele, they have started to explore digital currencies, stablecoins, and the underlying technologies.
In the past, Fink hasn’t been critic of the cryptocurrency industry, but hasn’t been much of a vocal advocate either. Now he is seemingly becoming more bullish on the future of crypto.
BlackRock & Crypto
According to earlier report, BlackRock is moving towards introducing cryptocurrency trading services for their clients. The key is to enter the digital asset space with “client support trading and then their own credit facility.” The investment giant is also planning to enable market players to borrow from the company by providing cryptocurrencies as collateral.
BlackRock has nearly $10 trillion assets under management (AUM).
