Larry Fink believes that the invasion of Ukraine will have an impact on the adoption of digital assets, as it will push governments to reassess their financial dependencies.
The conflict between Russia and Ukraine could boost the adoption of digital assets, as it could prompt governments in the rest of the world to reconsider their advantageous features. That’s the opinion of the CEO of the world’s biggest asset manager.
Larry Fink, president, and CEO of BlackRock’s investment giant revealed a letter directed to investors on Thursday. He speaks about Russia’s offensive against Ukraine and reflects on the possible consequences of this attack on the rest of the world.
Fink highlighted that the conflict could positively impact the widespread acceptance of digital assets among the considerations. He said that the war would oblige countries to reassess their asset dependencies. The CEO also added that some administrations already intended to play a more dynamic role in the digital currency arena, even before the conflict.
Impact on the Energy Sector
The director highlighted his belief that war will intensify some trends already brought about by the pandemic regarding how countries got connected in the global economy. He underscored that the Russian armed attacks over Ukraine had put an end to the globalization faced by the world for the last 30 years.
The director also added the current geopolitical scenario’s impact on the energy sources field along these lines. He expressed that while the short-term energy impact might delay progress towards net-zero emissions, it will boost the shift to greener energy sources over time.
BlackRock Actively Explores Digital Assets
Fink also assured that BlackRock is looking for digital currency features. A CoinDesk report revealed in February had already expected that the administrator with more than USD 10 billion in assets under management became interested in offering cryptocurrency trading services to its clients.
Fink said that as there is growing interest from clients, BlackRock would see digital currencies as an option, stable coins, and underlying technologies to understand how they can help the entity serve clients.
The New York asset management giant made significant moves into the new asset class. In the middle of last year, a job recruitment publication highlighted that it wanted to develop a Blockchain strategy for its Aladdin system.
In October of last year, Fink had already expressed his favorable stance regarding digital assets during an interview for CNBC. While stating that Fink was personally uninterested in Bitcoin, he admitted that he saw a particular role the digital asset could play; at that time, he had also revealed that his company was doing research in the sector to explore new possibilities.
More recently, BlackRock’s iShares made an application for an exchange-traded fund (ETF) that will intend to follow the performance of an index made up of companies in the blockchain and cryptocurrency sector.
By: Jenson Nuñez
