Larry Fink, the CEO of BlackRock – one of the biggest financial and investing platforms in the world – has dropped hints that he will potentially support bitcoin and cryptocurrencies in the coming future.
Larry Fink Goes from Crypto Hate to Crypto Interest
This is big news considering Fink has often spoken ill of digital assets in the past. At the time of writing, BlackRock oversees the management of approximately $10 trillion in assorted monies and assets, and it’s likely the company may be moving towards crypto as the space becomes more legitimate and popular amongst everyday traders.
In a letter to clients and board members alike, Fink hinted at the growing trends behind the crypto space. He stated:
BlackRock is studying digital currencies, stable coins, and the underlying technologies to understand how they can help us serve our clients.
There have been small moments in history where BlackRock has somewhat opened its heart and mind to digital currency assets. For example, just last year, the company began delving into bitcoin futures. This is a big change from someone (Fink) who in 2017 referred to the digital currency industry as the “index of money laundering.”
However, he says his stance on the crypto world has changed somewhat over the past few months due to the Russian invasion of Ukraine. He’s been watching the country take to crypto to stay afloat and garner the military resources it needs to keep its country safe and intact. Thus far, Ukraine has earned more than $50 million in digital currency donations in just the last few weeks alone.
In an interview, Fink stated:
A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption.
Governments around the world appear to be getting the hint that crypto is not only a growing space, but that usage is at an all-time high. People everywhere are seeing digital assets as hedge tools, or rather things that can keep their wealth steady and in place. For this reason, it looks like several regulators are either examining the prospects of national digital currencies or have already implemented appropriate tactics.
Governments Around the World Are Experimenting with Crypto
The most recent example comes out of the United States, with Joe Biden having issued an executive order a few weeks ago that called for agencies throughout the nation to begin examining the risks and benefits associated with digital currencies. This order also potentially opened the door to a digital version of the U.S. dollar to be issued by the Federal Reserve.
However, other areas of the world have moved quicker, with the European Central Bank having launched a two-year digital currency pilot program last summer. The move came after tremendous pressure from separate governments in Europe, while China has been experimenting with a digital version of the yuan since 2019.