Larry Fink, CEO of the world’s largest asset management company, BlackRock, believes that the ongoing Russia-Ukraine crisis has bolstered the argument for digital currencies as a means of international resolution.
According to Reuters, in a letter to shareholders, Fink stated that the prolonged struggle would push countries to reconsider their currency reliance, perhaps paving the way for a worldwide digital payment network. He claimed that the conflict had put an end to the forces of globalisation that had been at work for the past 30 years.
Fink’s prediction about the rise of the digital currency market is dead on, as trade restrictions against Russia have already prompted several countries that purchase oil and gas from the country to explore alternatives to the international SWIFT system. According to reports, India is working on a direct INR payment channel for energy purchases, and talk of a digital payment network is gathering pace.
According to sources, Ripple partner The Clearing House is in talks with Wells Fargo to develop a SWIFT substitute. After a year of steady decrease, the volume of local Bitcoin trading in Russia surged in March. However, before the invasion of Ukraine, the country was working to regulate the bitcoin business appropriately.