Larry Fink, CEO of the world’s largest asset management company BlackRock, believes that the ongoing Russian-Ukrainian crisis has increased interest in digital currencies as a tool for settling international transactions.
In a letter to shareholders, Fink noted that the ongoing war would force countries to reassess their currency dependency, which could eventually make room for a global network of digital payments, Reuters reported. He said that the war put an end to the forces of globalization that had been active for 30 years.
Fink’s observation about the growth of the digital currency market is entirely correct, as trade sanctions on Russia have already caused many countries that import oil and gas from them to look for alternative payment networks beyond centralized SWIFT. India is reportedly developing a gateway for direct payments in Indian rupees for energy purchases, while discussions on a digital payment network are also gaining momentum.
“A well-designed global digital payment system can improve the settlement of international transactions while reducing the risk of money laundering and corruption,” Fink said.
Ripple partner The Clearing House is rumored to be in talks with Wells Fargo to develop an alternative to SWIFT.
Huge #XRP News! I previously posted a video of a guy revealing that Wells Fargo is training on a #SWIFT replacement. I have now received an online service agreement update from WF that talks about real-time payments from Clearing House, a partner of #Ripple! Buckle Up! 1/2 pic.twitter.com/PuYcrs5vnS — Esoteric XRP ✨ (@Naturalmed777) March 15 2022
Russian bitcoin trading volume also registered a surge in March after a steady decline last year. However, prior to the invasion of Ukraine, the country sought to positively regulate the cryptocurrency market.
On the subject: Cryptocurrency trading in rubles falls, even though the ECB again warns of sanctions
Ukraine, on the other hand, legalized cryptocurrencies on March 16, 2022 after receiving millions of crypto aid from around the world. The war-torn nation has already raised more than $100 million in cryptocurrency donations, which they have used to strengthen their army and purchase supplies.
Cryptocurrencies have proven to be a great hedge against hard times over the years, but with the ongoing conflict in Ukraine, they have become an essential tool for international settlements and quick relief.