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The CEO of the world\u2019s largest asset manager, Blackrock, says the Russia-Ukraine war has a \u201cpotential impact on accelerating digital currencies.\u201d He confirms that Blackrock \u201cis studying digital currencies, stablecoins and the underlying technologies to understand how they can help us serve our clients.\u201d Blackrock CEO Larry Fink published his 2022 letter to shareholders Thursday with a section on digital currencies. Blackrock is the world\u2019s largest asset manager, overseeing more than $10 trillion.<\/p>\n \u201cThe Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades,\u201d Fink wrote. After extensively discussing the impact of the war, the CEO noted:<\/p>\n A less-discussed aspect of the war is its potential impact on accelerating digital currencies. The war will prompt countries to re-evaluate their currency dependencies.<\/p>\n<\/blockquote>\n Several renowned investors have predicted that the Russia-Ukraine war could risk the U.S. dollar\u2019s role as the world\u2019s reserve currency. Earlier this month, veteran investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, said what is happening with Russia and its sanctions is the end of the U.S. dollar<\/a>. Famed value investor Bill Miller shares a similar view<\/a>. Galaxy Digital CEO Mike Novogratz recently described<\/a>, \u201cWe are entering a world that\u2019s unknown where people are going to struggle to figure out what is the reserve currency.\u201d<\/p>\n The Blackrock boss proceeded to discuss central bank digital currencies (CBDCs). \u201cEven before the war, several governments were looking to play a more active role in digital currencies and define the regulatory frameworks under which they operate,\u201d he pointed out. Fink then referenced the Federal Reserve\u2019s study on the potential impact of the U.S. digital dollar. Federal Reserve Chairman Jerome Powell has repeatedly said that the Fed has not decided whether to issue a CBDC.<\/p>\n Fink outlined some benefits digital currencies could bring. \u201cA global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption,\u201d he detailed. \u201cDigital currencies can also help bring down costs of cross-border payments, for example when expatriate workers send earnings back to their families.\u201d<\/p>\n Regarding whether Blackrock will start offering crypto products and services to clients, Fink said:<\/p>\n As we see increasing interest from our clients, Blackrock is studying digital currencies, stablecoins and the underlying technologies to understand how they can help us serve our clients.<\/p>\n<\/blockquote>\n In July last year, the CEO said that Blackrock saw very little demand<\/a> for cryptocurrencies from clients.<\/p>\n However, Fink said in April last year that he is fascinated by cryptocurrency and believes it could become a \u201cgreat asset class<\/a>.\u201d He also said that bitcoin makes the U.S. dollar less relevant<\/a> and can evolve into a global market.<\/p>\n Nonetheless, he remained skeptical about crypto. In October last year, the Blackrock executive indicated that he shared a similar view<\/a> with JPMorgan CEO Jamie Dimon who said bitcoin is worthless.<\/p>\n
<\/strong><\/p>\nBlackrock on the Acceleration of Digital Currencies<\/h2>\n
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