Could the world’s largest asset manager overseeing $10 trillion in client funds finally be warming up to crypto?
The CEO of the world’s largest asset management firm, BlackRock, is bullish on cryptocurrency and believes that the ongoing Russia-Ukraine crisis has boosted the case for blockchain-based currencies as a tool of settlement for cross-border transactions.
In the latest letter to shareholders, CEO Larry Fink noted that the ongoing war would give nations no choice but to reevaluate their currency dependencies which could potentially open up opportunities for a global digital payment network.
Fink said:
“A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption.”
Fink’s observation is spot on seeing that the sanctions on Russia have already led to many countries that import oil and gas from them to look for alternate payment channels beyond the centralized SWIFT framework.
It is also rumored that Ripple partner, The Clearing House, is in talks with Wells Fargo to develop a SWIFT alternative.
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The local trading volume in Russia also spiked in March following a constant decline over the past year. On the other hand, Ukraine legalized cryptocurrencies on the 16th of March this year after receiving millions of dollars in cryptocurrency aid from people across the globe.
Ukraine has also raised more than $100 million in cryptocurrency donations, which the nation has used to reinforce their army and supply.
Although cryptocurrency has proven to be a great hedge against troubling times over the years, the recent, ongoing Ukraine-Russia crisis has shown that cryptocurrencies can become a prominent tool for international settlements and a way to send out quick relief.
The war in Ukraine is the latest accelerant that can hasten the trend towards crypto.
Concerns have arisen Russia, the eleventh largest in the world, might attempt a pivot to crypto after its access to the SWIFT global payment system was withdrawn as penalty for its invasion.
The EU Commission said on March 11th it would make sure that the country and its elites can't use crypto assets to circumvent economic reprisals put in place.
