BlackRock CEO: BTC will subvert traditional finance

Source: W3C DAO

BlackRock is the world’s largest asset management company, managing more than $10 trillion in assets. Its CEOLarry Fink has undergone a dramatic shift in his attitude toward cryptocurrencies over the past few years, from skepticism and criticism to recognition and support, which has generated a strong signal of trust in the cryptocurrency market.

From opposition to entry< br>

In 2017, Fink once called Bitcoin an "indicator of money laundering" and said that "Bitcoin just shows how much demand there is for money laundering in the world." . He takes a pessimistic view of the future of cryptocurrencies, arguing that they have no real value and are not regulated and supported by governments.

However, in 2022, Fink's views have changed significantly. In an interview with Fox Business, he said that cryptocurrencies, especially Bitcoin, have the potential to "disrupt finance." He said: "We do believe that if we can create more tokenization of assets and securities, which is what Bitcoin does, it can disrupt finance."

Fink’s shift is not unfounded, but is based on BlackRock’s client needs and market trends. He revealed that more and more global investors are consulting BlackRock about cryptocurrencies, and BlackRock is also actively exploring investment opportunities and innovative solutions for cryptocurrencies.

In the summer of 2022, BlackRock will connect its Aladdin investment platform to Coinbase Prime, giving traditional financial investors access to Bitcoin as a prelude to expansion into other cryptocurrencies. The company also announced a spot Bitcoin private trust, allowing its clients to directly hold the world’s largest cryptocurrency by market capitalization.

These moves demonstrate that even the largest traditional investment institutions cannot ignore the existence and potential of cryptocurrencies. As more traditional financial institutions enter the cryptocurrency space, they will bring an infusion of capital and an influx of new consumers and investors.

Some dissenting voices

However, cryptocurrency loyalists may have a different view. Cryptocurrency was originally born as a decentralized financial technology that rebelled against the traditional financial system, aiming to achieve an uncontrollable peer-to-peer payment network.

Therefore, the financial instruments promoted by institutions such as BlackRock, such as exchange-traded funds (ETFs), may be contrary to the original concept of Bitcoin.

An ETF is a traditional investment vehicle that uses Bitcoin as an asset but trades on a regulated stock exchange through a regulated broker. This structure could go against Bitcoin’s design and development, which is to give users control over their own funds without trusting a third party to manage their assets.

As a result, some industry experts worry that BlackRock may be getting into cryptocurrencies for the wrong reasons. Jim Bianco, President of Bianco Research said:“Cryptocurrency is losing its purpose. It should be about decentralization, permissionless and self-sovereignty. It would be nice to make it a more accessible bargaining chip, But this will only help gamblers in the short term, not the true promise of cryptocurrencies.”

BlackRock’s Crypto Play

Fink also said in an interview with CNBC on July 14, 2023 that cryptocurrencies will surpass international currencies and predicted that a global cryptocurrency will emerge in the next 10 years. He said:“I think within the next 10 years we will see a global cryptocurrency emerge, it will be accepted by governments, it will have some blockchain-based currency system, it will have Some currency systems based on digitalization."

These remarks by Fink reflect his forward-looking and openness towards cryptocurrency, and also show his view of BlackRock's strategy in the field of cryptocurrency Confidence in layout.

As a major player and leader in world finance, Fink will play an important role in shaping the future direction and development of cryptocurrencies, including determining how they will remain true to their original intentions.

It can be said that BlackRock is the world's largest asset management company, managing more than 10 trillion US dollars in assets. In recent years, BlackRock’s layout in the field of virtual currency can be analyzed from the following aspects:

1. Invest in assets and companies related to virtual currency.

BlackRock invests directly or indirectly in assets and companies related to virtual currencies through its funds and trusts. For example, BlackRock’s spot ETF has been approved. BlackRock also launched a spot Bitcoin private trust. In addition, BlackRock also holds shares in some virtual currency-related companies, such as Coinbase, MicroStrategy, Square, etc.

2. Explore technology and innovation related to virtual currency.

BlackRock explores technologies and innovations related to virtual currencies by recruiting professional talents, establishing research teams, and cooperating with technology companies. For example, BlackRock has hired a vice president of blockchain business to be responsible for formulating and implementing the company’s needs and strategies in blockchain business.

In addition, BlackRock has partnered with Microsoft to leverage cloud computing and blockchain technology to provide greater security and efficiency for its Aladdin investment platform. BlackRock has also partnered with Coinbase Prime to connect its Aladdin investment platform to virtual currency exchanges, giving traditional financial investors access to virtual currencies such as Bitcoin.

3. Predict the future development and trends of virtual currencies.

BlackRock’s senior leaders, such as CEO Larry Fink, Chief Investment Officer of Global Fixed Income Business Rick Rieder, etc., have all expressed positive opinions on the future development and trends of virtual currencies. the opinion of. For example, Fink once predicted that a global virtual currency will emerge in the next 10 years, which will be accepted by governments of all countries. It will have some currency systems based on blockchain, and it will have some currency systems based on digitalization. Rieder once said that Bitcoin is likely to replace gold because Bitcoin has more functions than gold.

To sum up, BlackRock’s layout in the field of virtual currency reflects its emphasis on and trust in virtual currency, and also shows its forward-looking and openness towards virtual currency.

BlackRock’s layout not only brings investment returns and competitive advantages to itself, but also brings capital injection and signal transmission to the entire virtual currency market. As an important player and leader in global finance, BlackRock will shape the future direction of virtual currencies.

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In January 2024, Fink once again expressed a positive view on cryptocurrencies and supported exchange trading of Ethereum (ETH) Fund (ETF), calling it a step towards asset tokenization. "I see the value in owning an Ethereum ETF. These are stepping stones toward tokenization, and I really believe that's the direction we're going to go," he said in an interview with CNBC. >

Ethereum is the second largest digital currency in the cryptocurrency market after Bitcoin. It is also an open platform that supports smart contracts and decentralized applications. Fink believes that the technical characteristics of Ethereum give it greater innovation potential and can realize the tokenization of more assets and securities, thus improving the efficiency and transparency of transactions.

Fink also saidthat he does not view cryptocurrencies as a currency but as an asset class, specifically referring to Bitcoin as “an asset class that protects you” against geopolitical tensions. Fear of political risk. He said: "It is no different than what gold has represented over thousands of years of history. The difference is that we have almost reached the production limit of Bitcoin."

Fink's These views show that his knowledge and understanding of cryptocurrency has gone beyond mere speculation and gambling, but looks at the technical advantages and social value of cryptocurrency from a deeper perspective. He focuses not only on Bitcoin as a scarcity and inflation-resistant asset, but also on Ethereum as a platform that supports innovation and tokenization.

Written at the end

In short, as the CEO of the world’s largest asset management company, Fink’s attitude and views on cryptocurrency are of great importance to the entire industry. influence and guidance. His transformation also reflects the maturity and development of the cryptocurrency market, as well as the adaptation and change of traditional financial institutions.

With the continuous progress and popularity of cryptocurrency, we can expect that Fink’s attitude and views on cryptocurrency will be more positive and supportive in the future, and we can also expect more from BlackRock in the field of cryptocurrency. Investment and innovation.

Fink’s vision is thatcryptocurrency will become a global currency that can transcend national borders and political restrictions to achieve greater efficiency and freedom. He said: "I think this is a very exciting time, and we are seeing the birth of a new currency that will change our world."