In his annual letter to shareholders, BlackRock CEO Larry Fink expressed he believes the war in Ukraine could accelerate the adoption of cryptocurrencies.
“The war will prompt countries to re-evaluate their currency dependencies,” he said. “Even 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.”
Fink pointed to the U.S. Federal Reserve, who recently published a white paper detailing the benefits and disadvantages of a central bank digital currency.
“A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption,” Fink continued. “Digital currencies can also help bring down costs of cross-border payments, for example when expatriate workers send earnings back to their families.”
The U.S. has been strict on imposing sanctions on Russia since the war began and targeted its central bank. Bitcoin and stablecoin transactions skyrocketed during this time as a refuge.
This is not the first time Larry Fink has spoken highly about the future of cryptocurrency, even though he is cautious when it comes to bitcoin volatility. He told CNBC in November he’s “not a student of bitcoin and where it’s going to go,” but he does believe there is a massive role for a digitized currency moving forward.