BlackRock CEO doubts Bitcoin will ever become a currency

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BlackRock CEO Larry Fink suggests that Bitcoin may not become the go-to currency for everyday spending and asserts that he hasn’t contemplated the potential price trajectory of Bitcoin.

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BlackRock CEO doubts Bitcoin will ever become a currency

BlackRock CEO Larry Fink doubts the practicality of using Bitcoin (BTC) for everyday transactions, reiterating it should be publicly perceived as purely an asset class.

In an interview with CNBC on Jan. 11, Fink stated his belief in Bitcoin, viewing it as an alternative form of wealth storage rather than a contender to replace national currencies.

“I don’t believe it’s ever going to be a currency. I believe it’s an asset class.”

BlackRock CEO Larry Fink appearing on CNBC on Jan. 12. Source: CNBC/YouTube

However, he does believe that central bank digital currencies (CBDCs) will come to fruition in the near future. 

“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 from Cointelegraph, over 100 countries are exploring the development of CBDCs, while 39 countries have either a pilot, proof-of-concept or launched CBDC initiatives.

Related: Ether price jumps 20% vs. Bitcoin as BlackRock boosts Ethereum ETF bets

Yet, when questioned about his stance on ARK Invest CEO Cathie Wood’s most recent Bitcoin (BTC) valuation predictions ranging from $600,000 to $1 million, Fink indicated price wasn’t his primary concern right now.

“I haven’t even thought about it,” Fink stated, explaining that it hasn’t been a top priority for him, as he is mainly focusing on offering “an instrument that can store wealth” through its newly approved spot Bitcoin exchange-traded fund (ETF).

“I think if it gets even close to that high, gold will represent even a bigger value. And let’s be clear, if you think it’s digital gold, there’s going to be a reference point between gold and Bitcoin.”

Meanwhile, in a separate interview with Fox Business on the same day, Fink clarified that the Bitcoin ETF will contribute to legitimizing an industry that has faced skepticism from the beginning.

“The advent of the Bitcoin ETF is an example that we’re legitimizing it; we’re creating more safety,” he stated.

This follows news on Jan. 10 that the United States Securities and Exchange Commission had approved BlackRock’s spot Bitcoin ETF application and 10 others to launch in the country.

Since its Bitcoin ETF approval, BlackRock has a record of 576 ETF approvals to just one rejection. 

Magazine: Expect ‘records broken’ by Bitcoin ETF: Brett Harrison (ex-FTX US), X Hall of Flame

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