The head of BlackRock explained why crypto will surpass international currencies
Date: 2023-07-16 Author: Karina Ziganova Categories: BUSINESS
BlackRock CEO Larry Fink pointed to the key role of cryptocurrencies in democratizing investments around the world. He expressed this opinion in an interview with CNBC.
According to Fink, cryptocurrencies have "special value compared to other asset classes," helping to diversify investment portfolios.
"More and more of our global investors are asking us about cryptocurrency <...> It is so international that it will surpass any currency," said the head of BlackRock.
BlackRock is thinking about a spot bitcoin ETF
On June 15, BlackRock filed an application to register the iShares Bitcoin Trust spot bitcoin ETF, triggering a flood of similar applications from other asset managers. The decision of the world's largest company in terms of managed assets to launch a spot ETF indicates the readiness of institutional players to actively invest in cryptocurrency instruments
However, in an interview with the TV channel, Fink refused to comment on BlackRock's application to create a spot bitcoin ETF in the United States, as it is still under consideration by the Securities and Exchange Commission (SEC).
"We have done a lot of work, and the role of ETFs in the world is transforming investments. And we are only at the beginning of the journey," Fink said.
Cryptocurrency will not become the money of the future
However, the Bank for International Settlements (BIS) believes that tokenization will be a key element in the development of the monetary system in the coming years. At the same time, cryptocurrency and decentralized finance (DeFi) will not become the "money of the future" due to critical defects in the system.
CBDCs and tokenized deposits will play a key role in tokenization. To do this, they need to be combined into a new type of financial market infrastructure. BIS proposes to create a single distributed ledger that will strengthen the financial system. It is also necessary to create a unified system where digital and traditional forms of money live separately from each other.
