BlackRock CEO does not believe that cryptocurrencies will replace fiat money but he is optimistic about them. Although he initially called Bitcoin a “money laundering index,” he now sees it growing as an asset class.
In recent days, BlackRock CEO Larry Fink appeared fascinated with Bitcoin in an interview with the CNBC television network. Although he said that cryptocurrencies will not replace fiat money, he stressed that they could become a great asset class.
The executive seemed significantly more bullish on the crypto space, especially after Coinbase’s initial public offering (IPO) on Nasdaq. After years of skepticism from Wall Street giants and global regulators, the exchange finally went public.
Larry Fink Is Optimistic but Cautious about Cryptocurrencies
“I am still fascinated by [cryptocurrencies]. Ultimately, the number of people who are focusing on them and the narrative [around them] encourage me. They could become a great asset class,” said Fink.
However, the CEO of BlackRock clarified that he does not believe “that we should think of cryptocurrencies as a substitute for fiat currencies.” This leads to thinking that he considers crypto assets to be a complement to physical money.
BlackRock CEO Does Not Think that Cryptocurrencies Will Replace Fiat Currencies
Although the CEO of BlackRock is fascinated by Bitcoin, he is skeptical that cryptocurrencies could replace fiat currencies. Fink wanted to make very clear that cryptocurrencies and fiat currencies are different.
He believes that governments and central banks will eventually develop and launch their respective CBDCs. However, he stated that investors should not think of cryptocurrencies as a “substitute for fiat currencies.”
Additionally, Fink noted that his organization is “still observing” the developments in the cryptocurrency space. Despite this, he highlighted the little institutional demand from their customers for them.
He said that they have seen widespread interest from institutions in cryptocurrencies around the world. In that sense, he noted that they are studying these types of assets and investing in them.
Fink’s Opinion on Bitcoin Has Evolved Over Time
It is true that Fink, whose net worth includes more than USD 1.1 billion, was initially not interested in cryptocurrencies. In 2017, the billionaire even referred to Bitcoin as a “money laundering index.”
Over time, his views on Bitcoin have evolved. In December 2020, Larry Fink spoke positively about the pioneering cryptocurrency. The executive then said that he could see Bitcoin becoming an asset class.
In a filing with the SEC, his firm said that they were considering adding Bitcoin futures to their funds. Despite the seemingly mixed messages about cryptocurrencies, they might be exploring the possibility of getting more directly involved in the sector.
The growing relevance of cryptocurrencies in the world economy has led many institutions to take an interest in incorporating them. Larry Fink is just one of many business people who, after having a negative opinion about Bitcoin, now even invest in it.
At the time of writing this article, Bitcoin is trading at around USD 55,600, showing a decreasing variation of 7.8% in the last 24 hours, according to data from CoinGecko.
By Alexander Salazar