Larry Fink, the CEO of BlackRock, the world's largest asset manager, has expressed skepticism about Bitcoin's potential to become a currency. In a recent interview with CNBC, Fink shared his views on the future of Bitcoin and its role in the financial world.
Fink highlighted that he sees Bitcoin more as an alternative form of wealth storage rather than a contender to replace national currencies. He stated, "I don’t believe it’s ever going to be a currency. I believe it’s an asset class.” This perspective aligns with a growing view among financial experts who see cryptocurrencies as investment vehicles rather than transactional currencies.
However, Fink expressed belief in the emergence of central bank digital currencies (CBDCs). He predicted that CBDCs would come to fruition soon, utilizing technology and blockchain for their development. This belief is supported by data indicating that over 100 countries are exploring the development of CBDCs, with 39 countries having either launched or are piloting CBDC initiatives.
Regarding ARK Invest CEO Cathie Wood’s Bitcoin valuation predictions, which range from $600,000 to $1 million, Fink indicated that he hadn't contemplated the potential price trajectory of Bitcoin. He emphasized focusing on offering an instrument that can store wealth through BlackRock's newly approved spot Bitcoin exchange-traded fund (ETF).
Fink also mentioned in a separate interview with Fox Business that the Bitcoin ETF contributes to legitimizing an industry that has faced skepticism since its inception. “The advent of the Bitcoin ETF is an example that we’re legitimizing it; we’re creating more safety,” he stated.
BlackRock's recent foray into the Bitcoin ETF market follows the U.S. Securities and Exchange Commission's approval of their spot Bitcoin ETF application, among 10 others. Since then, BlackRock has a record of 576 ETF approvals to just one rejection.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.