Blackrock Reverses Crypto Position | Cites Resolution of International Payment Problems

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Blackrock Reverses Crypto Position | Cites Resolution of International Payment Problems

Fink, who once opposed cryptocurrencies calling Bitcoin “an index of money laundering”, is now singing a different tune. In response to the needs of their clients, Blackrock is recognizing advantages of crypto transactions and delving deeper into the benefits it offers.

A top executive at investment management behemoth BlackRock says the company is researching crypto assets in response to heightened interest from clients.

In a new letter, CEO and co-founder Larry Fink says that digital assets can resolve many of the problems associated with international payments, such as high prices and associated crimes.

“A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption.

Digital currencies can also help bring down costs of cross-border payments, for example when expatriate workers send earnings back to their families.”

The executive says that many of the firm’s patrons are showing interest in virtual assets, prompting the multitrillion-dollar management company to study the impact cryptocurrencies could have on its client base.

“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.”

Fink also notes that nations are accelerating the pace at which they adopt digital currencies, partly due to the ongoing conflict between Ukraine and Russia.

“A less discussed aspect of the [Russia-Ukraine] war is its potential impact on accelerating digital currencies. The war will prompt countries to re-evaluate their currency dependencies.

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.

The US central bank, for example, recently launched a study to examine the potential implications of a US digital dollar.”

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