The CEO of asset management company BlackRock believes that military actions in Ukraine and sanctions against Russia will increase the popularity of cryptocurrencies.
Larry Fink, in his annual letter to BlackRock shareholders, stressed that the conflict in eastern Europe signaled the end of globalization. Now many countries are looking for an opportunity to increase the degree of their independence under the threat of large-scale economic sanctions. This should lead to a massive change in supply chains, payment systems and, very likely, will make digital currencies more popular.
Now the vast majority of countries in the world use the US dollar for international financial transactions. However, events in Ukraine will force them to assess the dependence of their economies and financial flows on foreign currencies.
“Even before the outbreak of hostilities, some states researched and developed digital currencies and the regulatory framework for their work. A global digital payment system, if properly designed, can make international payments transparent, reduce the risk of money laundering and corruption. Digital currencies can reduce the cost of international transactions, for example, when an employee sends money to his family in another country,” argues Larry Fink.
The head of BlackRock said that the $10 trillion asset manager sees a growing interest of its clients in cryptocurrencies and stablecoins. Therefore, BlackRock is studying digital currencies, as well as technologies for their creation and operation. In late January, BlackRock, through its iShares subsidiary, launched an exchange-traded fund that will track the stocks of “companies in the field of blockchain and cryptocurrencies.”
Source: Bits
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