Bitcoin has exploded back into the limelight this year, solidifying its reputation as digital gold.
Now, after BlackRock’s BLK chief investment officer sent shock waves through the bitcoin and cryptocurrency community last month when he said bitcoin is “here to stay,” Larry Fink, BlackRock’s chief executive, has warned the growing popularity of bitcoin and digital currencies is having a “real impact” the U.S. dollar.
“Having a digital currency has real impact on the U.S. dollar,” Fink, who has grown BlackRock into the world’s largest money-management company with around $7 trillion in assets under management, told attendees of a Council on Foreign Relations digital symposium, adding digital currencies such as bitcoin are making the U.S. dollar “less relevant.”
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“I’m not talking about for Americans, I’m talking about for international holders of dollar-based assets,” Fink clarified, raising the question: “Does [digital currency] change the need for the dollar as a reserve currency, if there was a true digital currency that was separated from dollar-based assets?”
Fink, who was answering questions alongside former Bank of England governor Mark Carney, said the level of attention generated by previous BlackRock comments on bitcoin showed how the cryptocurrency has “caught the attention and the imagination of many” who are “fascinated and excited by it.”
“Can [bitcoin] evolve into a global market,” Fink asked. “Possibly. [Bitcoin is] still untested, a pretty small market relative to other markets. You see these big giant moves every day. It’s a thin market.”
Back then, Fink, alongside the likes of JP Morgan chief executive Jamie Dimon, dismissed bitcoin as nothing more than a “money laundering” tool.
Source: Forbes – Money