Larry Fink, CEO of investment management firm BlackRock, stated on Thursday that the Russia-Ukraine war could lead to an increase in crypto usage, altering his crypto stance from negative to positive. According to him, the battle has pushed the settlement of foreign transactions from banks and foreign-exchange settlement organizations to crypto and digital currencies.
According to Reuters, BlackRock CEO Larry Fink believes digital currencies, such as bitcoin and other cryptocurrencies, might be used to settle international transactions, as seen during the Russian-Ukraine war.
According to Fink in a letter to BlackRock shareholders, the battle would compel countries to reconsider their reliance on fiat currencies and adopt crypto as an alternative. With rising customer interest in digital currencies and stablecoins, BlackRock is researching their utility and benefits.
In response to Russia’s invasion of Ukraine, BlackRock banned purchases of Russian assets in its active index portfolios, restricting money flow to and investment in Russia.
During the war, Western sanctions, and the suspension of the Russian stock market, BlackRock’s overall client exposure to Russia fell from $18 billion to less than $1 billion.
The Russian-Ukraine conflict has disrupted global supply chains, increased inflation, causing governments to tighten monetary policies, and increased energy and oil costs. However, it has boosted crypto acceptance as cryptocurrency prices have risen, with bitcoin now trading above $43,500. Bitcoin and other digital currencies are regarded as an inflation hedge and a store of value.
As Russia employed digital currencies to avoid sanctions and Ukraine sought donations in crypto for military and humanitarian relief, increased crypto acceptance resulted in the settlement of foreign transactions in crypto.
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