The CEO of BlackRock Doubts the Viability of Bitcoin as a Digital Currency:
- Larry Fink, CEO of BlackRock, expresses doubts about Bitcoin as a common currency.
- He considers Bitcoin more as an asset class than a currency.
- BlackRock’s Bitcoin Spot ETF has already attracted billions of dollars in inflows.
“I do not believe it will ever be a currency.”
Once skeptical of Bitcoin, BlackRock CEO Larry Fink now declares the cryptocurrency to be a viable asset class, comparing its function to that of digital gold.
Fink shared his thoughts during an interview with CNBC following the historic launch of BlackRock’s Bitcoin ETF. However, he maintains skepticism about Bitcoin ever becoming a full-fledged currency: “I do not believe it will ever be a currency. I think it is an asset class.“
Indeed, Fink sees Bitcoin not as a potential replacement for traditional government-issued currencies like the euro or the dollar, but rather as an alternative method to store value.
The Future of Bitcoin and Central Bank Digital Currencies
Fink also addressed the topic of central bank digital currencies (CBDCs), which he believes will materialize in the near future.
“I think we will create digital currencies, we will use technology for that. We will use a blockchain,” he stated. This statement comes as more than 100 countries explore CBDC development, with 39 countries already having launched or being in the process of launching such initiatives.
Meanwhile, Fink clarified that BlackRock’s recent Bitcoin ETF plays an important role in legitimizing cryptocurrencies by allowing clients to access Bitcoin through a traditional investment mechanism.
“The advent of the Bitcoin ETF is an example that we are legitimizing it; we are creating more security,” Fink affirmed.
Today, BlackRock’s Bitcoin Spot ETF has attracted over $1.6 billion in inflows, with $585 million on the second day, representing a drop of about 500% compared to the first day.