The recent collapse of one of the largest cryptocurrency exchanges in the world, FTX, and the subsequent havoc it wreaked on the entire cryptocurrency industry has shown that this sector still has its supporters but also that it is not without critics.
One of them is longtime crypto skeptic Larry Fink, CEO of BlackRock, the largest asset management company in the world that oversees around $8 trillion and, interestingly, has invested close to $24 million in FTX through a tool called a “fund.” funds.” “, as Fink himself said.
That puts it among several companies from Wall Street to Silicon Valley, including Sequoia Capital and Tiger Global, that took a hit (or even went out of business) after the collapse of Sam Bankman Fried in the Bahamas.
In 2017, Fink called cryptocurrencies a “money laundering index,” but over the past year or so, his critical attitude toward cryptocurrencies has shifted from disdain and callous skepticism to open interest and concern.
In October 2021, Coinphony reported that the head of BlackRock expressed interest in digital assets such as Bitcoin (BTC), saying he was on the fence about its future prosperity but believed it could play a big role one day.
Five months later, Fink wrote in a letter to shareholders that:
“BlackRock is studying digital currencies, stablecoins, and underlying technologies to understand how they can help us serve our customers. (…) A carefully designed global digital payment system can improve the settlement of international transactions while reducing the risks of money laundering and corruption.”
In April 2022, Fink shared his company’s experience with rising customer interest in digital assets, acknowledging that BlackRock was studying cryptocurrencies and their ecosystem shortly after announcing its investment in the stablecoin publisher circuit.
At the same time, he was criticized by Anthony Scaramucci, founder of investment firm SkyBridge Capital, who said Fink, as well as JPMorgan’s Jamie Dimon, Berkshire Hathaway CEO Warren Buffett and vice chairman Charlie Munger, had all failed to do their jobs. Homework on cryptography. .
about the recent collapse
However, the crypto collapse caused by FTX was proof to BlackRock’s CEO that most crypto companies won’t succeed, he said during an interview at the New York Times DealBook Summit on November 30:
“In fact, I think most companies wouldn’t exist.”
But Fink still believes the underlying crypto technology has potential, such as facilitating instant settlement of securities and simplifying shareholder voting.
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The post This is how BlackRock CEO Larry Fink’s stance towards crypto in 2022 appears first on Coinphony.