BlackRock CEO Larry Fink Expresses Doubt on Bitcoin as Currency, Foresees Rise of CBDCs
Summary:
BlackRock CEO, Larry Fink, views Bitcoin as an asset class rather than a potential currency replacement. He believes Central Bank Digital Currencies (CBDCs) are likely to materialize soon, supported by blockchain technology. Commenting on ARK Invest CEO Cathie Wood's Bitcoin valuation predictions, Fink stated that price isn’t his primary concern, but rather Bitcoin's role as a wealth-storing instrument is. This insight follows the SEC's recent approval of BlackRock’s spot Bitcoin exchange-traded fund (ETF) application.
CEO of BlackRock, Larry Fink, expresses skepticism regarding Bitcoin's (BTC) potential as a regular currency, emphasizing that it should be viewed strictly as an asset class. In a CNBC interview conducted on January 11, Fink shared his faith in Bitcoin but suggested it be considered more as an alternate means of storing wealth as opposed to a replacement for traditional currencies. He voiced his opinion that Bitcoin would not transition into a recognized currency but rather would remain as an asset class.
In contrast, Fink has faith that Central Bank Digital Currencies (CBDCs) will take shape in the not too distant future. His vision includes the creation and use of digital currencies supported by blockchain technology. Cointelegraph's latest statistics show that over 100 nations are currently researching CBDCs, and 39 of these are in advanced stages of development, running pilots or already implementing their CBDC initiatives.
Regarding his views on Cathie Wood's, CEO of ARK Invest, recent evaluation of Bitcoin which ranges between $600,000 and $1 million, Fink revealed that he hasn't given the matter much thought. His current primary interest is not Bitcoin's potential valuation but rather its role as a "wealth storing instrument." In his opinion, if Bitcoin's value soars to those suggested highs, gold would retain, or perhaps increase, its value. He added, "if Bitcoin is viewed as digital gold, a value comparison between the two will likely emerge.”
Interestingly, these remarks come on the back of the approval by the United States Securities and Exchange Commission (SEC) of BlackRock's application for a spot Bitcoin exchange-traded fund (ETF) among ten other such applications. This development allows Bitcoin ETF trading to commence in the United States.
Cointelegraph also reported that, as of January 11, BlackRock had a 575 to 1 approval ratio for its prior ETF applications. This approval ratio now stands at 576-1 due to the recent approval of their spot Bitcoin ETF.
Published At
1/13/2024 4:06:33 AM
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