Larry Fink, the CEO of BlackRock, believes the Russia-Ukraine war could accelerate the adoption of digital currency. Fink highlighted in a shareholder letter that the Kremlin’s brutal attack on Ukraine has had, and will continue to have a wide range of ramifications on the world.
The executive says digital currencies will gain momentum and the war will prompt governments to re-evaluate their currency dependencies. Fink outlined that a thoughtfully designed global digital payment system can enhance the settlement of international transactions. It can reduce the risk of money laundering and corruption. Cryptocurrencies can bring down the costs of cross-border payments, such as when expatriate workers send earnings back home to their families.
BlackRock is being driven by the clients’ growing interest to study digital currencies, the underlying technologies, and stable coins. The US government is also looking into various parts of the crypto space. This comes after US President Joe Biden signed the executive order for the responsible development of digital assets.
It should be noted that over the past year, BlackRock has been giving out mixed messages about cryptocurrency. In October 2021, Fink said there is a huge role for a digitized currency. He revealed that BlackRock was learning about the blockchain and crypto sectors. Back in April 2021, Fink had said pension funds, registered investment advisers and insurance companies were showing little interest in the crypto space.