Blackrock, the world's largest asset manager, says that the conflict between Russia and Ukraine could slow down the growth of digital currencies

"The war between Russia and Ukraine could have an impact on the growth of digital currencies," the CEO of the world's largest asset manager, Blackrock, says in an interview. He says that Blackrock is looking into digital currencies, stablecoins, and the technology behind them to figure out how they can help them serve their clients better, and he says that is true.

Blackrock on the Speed of Digital Currencies

Larry Fink, the CEO of Blackrock, sent out a letter to shareholders on Thursday that talked about digital currencies. There are more than $10 trillion worth of assets under the control of Blackrock.

Over the last three decades, "globalization has come to an end," Fink said. After talking about the war for a long time, the CEO said:

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.

There are a lot of well-known investors who say that the Russia-Ukraine war could make the U.S. dollar less important as the world's reserve currency, which could change. This month, Jim Rogers, a longtime investor who co-founded the Quantum Fund with billionaire investor George Soros, said that what is going on with Russia and its sanctions is going to mean the end of the U.S. dollar. Bill Miller, one of the world's best value investors, thinks the same. CEO Mike Novogratz recently said, "We are entering a world where people will have a hard time figuring out what the reserve currency is. People are going to have a hard time figuring that out."

Blackrock's CEO then talked about digital currencies made by central banks (CBDCs). "Before the war, some governments were looking to get more involved in digital currencies and set up rules for how they work," he said. Fink then talked about the Federal Reserve's study on how the U.S. digital dollar might affect people. Jerome Powell, the head of the Federal Reserve, has said many times that the Fed hasn't decided whether to issue a CBDC.

Fink talked about how digital currencies could help people. "A global digital payment system that is well thought out can make it easier to settle international transactions while reducing the risk of money laundering and corruption," he said. There are also benefits to using digital currencies for cross-border payments, like when expats send money home to pay for things like rent and food.

On the question of whether Blackrock will start selling crypto products and services to its clients, Fink said: 

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.

In July of last year, the CEO of Blackrock said that clients didn't want to buy cryptocurrencies.

He said that in April of last year, Fink said that he was very interested in cryptocurrency and that he thinks it could be a great way to store money. He also said that bitcoin makes the U.S. dollar less important and that it could become a global market in the long run.

However, he was still skeptical about crypto. Jamie Dimon, the CEO of JPMorgan Chase, said that bitcoin is worthless in October of last year. A Blackrock executive said that he thought the same thing.

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