A war between Russia and Ukraine could accelerate the adoption of digital currencies as a medium for international payments. This opinion was expressed by BlackRock CEO Larry Fink. Reuters.
In a letter to shareholders, the head of the world’s largest asset manager said that the events will push countries to rethink currency dependence. Due to customer interest, BlackRock is looking into digital assets and stablecoins, Fink added.
“A well-designed global digital payment system can improve international transaction settlement processes while reducing the risk of money laundering and corruption,” he said.
The geopolitical crisis put an end to the globalization trends that have been in place for the past 30 years, Fink believes.
The CEO of BlackRock said that after the invasion began, the company with $10 trillion in assets under management stopped buying any Russian securities for index portfolios.
“Over the past weeks, I have spoken to countless stakeholders, including clients and employees, who want to understand what can be done to prevent the deployment of capital in Russia. By definition, we consider this our fiduciary duty,” Fink added.
According to BlackRock, the volume of client liabilities in Russia decreased during the war from $18 billion to less than $1 billion.
Fink anticipates the negative effects of the war on global supply chains, which will contribute to inflationary pressures. This will push central banks to tighten monetary policy and return to measures during the COVID-19 pandemic.
Regulators will have to face a dilemma they haven’t thought about in decades – whether to fight inflation or slow economic activity, the head of BlackRock said.
He recalled that due to the sanctions imposed against Moscow, energy prices have increased. However, Fink believes that this will only make the achievement of security in this area a global priority and accelerate the transition to renewable sources.
In Russia, against this background, they allowed the sale of gas and other resources for bitcoin.
Recall that back in July 2021, Larry Fink stated the minimum interest of clients in digital assets. Already in February 2022, the media learned about the company’s intention to launch a cryptocurrency trading service.
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A war between Russia and Ukraine could accelerate the adoption of digital currencies as a medium for international payments. This opinion was expressed by BlackRock CEO Larry Fink. Reuters.
In a letter to shareholders, the head of the world’s largest asset manager said that the events will push countries to rethink currency dependence. Due to customer interest, BlackRock is looking into digital assets and stablecoins, Fink added.
“A well-designed global digital payment system can improve international transaction settlement processes while reducing the risk of money laundering and corruption,” he said.
The geopolitical crisis put an end to the globalization trends that have been in place for the past 30 years, Fink believes.
The CEO of BlackRock said that after the invasion began, the company with $10 trillion in assets under management stopped buying any Russian securities for index portfolios.
“Over the past weeks, I have spoken to countless stakeholders, including clients and employees, who want to understand what can be done to prevent the deployment of capital in Russia. By definition, we consider this our fiduciary duty,” Fink added.
According to BlackRock, the volume of client liabilities in Russia decreased during the war from $18 billion to less than $1 billion.
Fink anticipates the negative effects of the war on global supply chains, which will contribute to inflationary pressures. This will push central banks to tighten monetary policy and return to measures during the COVID-19 pandemic.
Regulators will have to face a dilemma they haven’t thought about in decades – whether to fight inflation or slow economic activity, the head of BlackRock said.
He recalled that due to the sanctions imposed against Moscow, energy prices have increased. However, Fink believes that this will only make the achievement of security in this area a global priority and accelerate the transition to renewable sources.
In Russia, against this background, they allowed the sale of gas and other resources for bitcoin.
Recall that back in July 2021, Larry Fink stated the minimum interest of clients in digital assets. Already in February 2022, the media learned about the company’s intention to launch a cryptocurrency trading service.
Subscribe to the Cryplogger channel at YouTube.
Found a mistake in the text? Select it and press CTRL+ENTER
