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BlackRock CEO Larry Fink Doubts Bitcoin as Currency

In a recent interview with CNBC on January 11, BlackRock CEO Larry Fink shared his skepticism regarding the practicality of using Bitcoin for everyday transactions, reinforcing his belief that the cryptocurrency should be regarded as a distinctive asset class rather than a potential replacement for national currencies.

Fink acknowledged his positive stance on Bitcoin, characterizing it as an alternative means of storing wealth. However, he firmly stated his opinion that Bitcoin is not suitable for day-to-day transactions, citing its volatility and other challenges that hinder its role as a currency.

“I don’t believe it’s ever going to be a currency. I believe it’s an asset class,” Fink asserted during the interview. This viewpoint aligns with his overarching strategy, which primarily focuses on positioning Bitcoin as a store of wealth.

During the conversation, Fink expressed confidence in the future development of central bank digital currencies (CBDCs), emphasizing the use of blockchain technology in their creation. While acknowledging the potential for digital currencies, he made it clear that Bitcoin, in his perspective, serves a different purpose.

“I think we’re going to create digital currencies; we’re going to use technology for it. We’re going to use a blockchain,” Fink explained. He elaborated that his attention has been more concentrated on providing a financial instrument that can effectively store wealth, particularly through BlackRock’s recently approved spot Bitcoin exchange-traded fund (ETF).

The approval of BlackRock’s Bitcoin ETF by the United States Securities and Exchange Commission (SEC) on January 10 is a significant development in the cryptocurrency market. Fink highlighted the significance of the Bitcoin ETF as a step toward legitimizing the industry and instilling a sense of safety and security among investors.

“The advent of the Bitcoin ETF is an example that we’re legitimizing it; we’re creating more safety,” Fink stated in a separate interview with Fox Business on the same day. The ETF approval marked a crucial milestone, as BlackRock’s application was among the ten granted approval to commence trading in the United States.

Despite expressing reservations about Bitcoin as a currency, Fink’s acknowledgment of its potential as a store of wealth and the approval of BlackRock’s Bitcoin ETF indicate a growing acceptance of the cryptocurrency within traditional financial circles. As the industry continues to evolve, the role of Bitcoin and other digital assets in the broader financial landscape remains a topic of ongoing discussion and adaptation.

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