Cryptocurrencies have taken centre stage in the ongoing invasion of Ukraine by Russian forces.
BlackRock CEO Larry Fink told the company’s investors in a newsletter shared earlier today that the ongoing war in Ukraine could lead to faster adoption of cryptocurrencies.
The Russian forced invaded Ukraine more than a month ago. The Ukrainian government has received millions of dollars in support from the cryptocurrency community since the war began.
Furthermore, the Ukrainian government also passed its digital assets law in a bid to legalise the use of cryptocurrencies in the country. BlackRock’s CEO believes that these moves could accelerate the adoption of cryptocurrencies. He said;
"A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption."
This latest comment differs from the tone he took in May last year when he raised some concerns around volatility.
Fink said BlackRock is currently studying digital assets, adding that it is too early to determine whether cryptocurrencies are just a speculative trading tool.
Similar to other leading financial institutions in the world, BlackRock said it is finding ways to ensure that capital is not deployed to Russia. He said;
"Over the past few weeks, I’ve spoken to countless stakeholders, including our clients and employees, who are all looking to understand what could be done to prevent capital from being deployed to Russia. We believe this is the definition of our fiduciary duty."
The cryptocurrency space continues to gain adoption despite the current bearish trend in play. Over the past few years, several CEOs, including JPMorgan’s Jamie Dimon, have changed their tones regarding cryptocurrencies despite earlier criticisms.
The total cryptocurrency market cap is closing in on $2 trillion as Bitcoin, and other major cryptocurrencies have performed well in recent days.