Ukraine-Russia War Could Accelerate Crypto Adoption: BlackRock CEO

Larry Fink, the Chief Executive Officer at BlackRock Inc, stated that the Russia-Ukraine war could help bolster the adoption of cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term to settle international transactions.

According to Reuters, countries will reassess the dependency on traditional currencies and eventually shift their focus towards cryptos and stablecoins. “A global digital payment system, thoughtfully designed, can enhance the settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term of international transactions while reducing the risk of money laundering and corruption,” he commented on the matter.

He added: “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.”

According to the letter from the Chairman and CEO of the $10 trillion asset manager on Thursday, the Russia-Ukraine crisis has put an end to the global forces that have been in force for the past 30 years.

He said that having access to global capital markets is a privilege, not a right, adding that BlackRock suspended the purchase of Russian securities in its active index portfolio following Russia’s invasion of Ukraine.

“While companies’ and consumers’ balance sheets are strong today, giving them more of a cushion to weather these difficulties, a large-scale reorientation of supply chains will inherently be inflationary,” Fink pointed out.

Dependency on Russian Commodities

BlackRock Inc.’s overall client exposure to Russia had declined to less than $1 billion from $8 billion before the Russian invasion of Ukraine triggered Western sanctions and the closure of the Russian stock market earlier this month, according to figures provided by the asset manager. “Energy security has joined the energy transition as a top global priority,” Fink said about energy prices’ surging across the board following the sanctions on Moscow’s government.