Larry Fink, the CEO of BlackRock, expresses doubt about Bitcoin’s practicality for everyday transactions, emphasising its role as an asset class rather than a currency.
In a Jan. 11 CNBC interview, Fink views Bitcoin as an alternative wealth storage, not a replacement for national currencies. Despite this scepticism, he believes central bank digital currencies (CBDCs) utilising blockchain technology will emerge soon.
“I don’t believe it’s ever going to be a currency. I believe it’s an asset class. I think we’re going to create digital currencies, we’re going to use technology for it. We’re going to use a blockchain,” he stated.
According to recent data achieved by Cointelegraph, over 100 countries are exploring the development of CBDCs, while 39 countries have either a pilot, proof-of-concept or launched CBDC initiatives.
Fink, when questioned about ARK Invest CEO Cathie Wood’s Bitcoin valuation predictions, dismisses immediate concerns about price, stating it’s not his priority. Instead, he focuses on BlackRock’s recently approved spot Bitcoin ETF, aiming to offer a secure instrument for wealth storage. Fink notes that if Bitcoin’s value approaches Wood’s predictions, gold may gain even more significance, establishing a reference point between the two assets.
In a separate interview with Fox Business on the same day, Fink emphasises the Bitcoin ETF’s role in legitimising the industry, addressing scepticism. The approval of BlackRock’s spot Bitcoin ETF, alongside 10 others by the U.S. Securities and Exchange Commission on Jan. 10, marks a significant development. BlackRock now boasts 576 ETF approvals with only one rejection since gaining approval for its Bitcoin ETF.