BlackRock CEO Larry Fink expressed skepticism about Bitcoin's suitability as an everyday currency and reiterated his view that it should be primarily perceived as an asset class. In an interview with CNBC, Fink emphasized his belief that Bitcoin is an alternative form of wealth storage rather than a replacement for national currencies. While acknowledging the rise of central bank digital currencies (CBDCs), Fink suggested that they are likely to become a reality in the near future, incorporating blockchain technology. When questioned about Cathie Wood's recent Bitcoin valuation predictions, Fink stated that he hasn't contemplated the potential price trajectory of Bitcoin, focusing instead on offering an instrument for wealth storage through the recently approved spot Bitcoin exchange-traded fund (ETF).


Key Points:

  • Bitcoin as an Asset Class: BlackRock CEO Larry Fink doubts Bitcoin's practicality for everyday transactions, asserting that it should be considered an asset class rather than a currency.

  • CBDCs on the Horizon: Fink believes that central bank digital currencies (CBDCs) will be created, utilizing technology and blockchain. Over 100 countries are exploring CBDCs, and 39 countries have initiated CBDC initiatives.

  • Bitcoin Price Concerns: Fink downplays concerns about Bitcoin's price trajectory, stating that he hasn't thought about it and emphasizing his current focus on offering an instrument for wealth storage through the spot Bitcoin ETF.

  • Legitimizing the Industry: Fink sees the approval of the Bitcoin ETF as a step toward legitimizing the cryptocurrency industry and enhancing safety.

  • Spot Bitcoin ETF Approval: On January 10, the U.S. Securities and Exchange Commission (SEC) approved BlackRock's spot Bitcoin ETF application, along with ten other applications.

Conclusion: Larry Fink's statements reflect skepticism about Bitcoin's role as a currency while emphasizing its potential as an asset class. The recent approval of BlackRock's spot Bitcoin ETF aligns with Fink's focus on providing a legitimate instrument for wealth storage. As central bank digital currencies gain attention globally, Fink sees blockchain technology playing a role in their development, contributing to the evolving landscape of digital currencies.


(CIARAN LYONS, COINTELEGRAPH, 2023)