Billionaire Larry Fink has been keeping an eye on the advancement of digital assets, according to his recent letter to shareholders.
In an annual letter to shareholders sent by BlackRock CEO Larry Fink, Fink described how the digital asset industry has witnessed “very exciting developments.”
Specifically, Fink Highlights the growth of the use of Bitcoin and cryptocurrencies in India, Brazil and parts of Africa. He describes how “dramatic advances in digital payments” are “reducing costs and promoting financial inclusion.”
Bitcoin Magazine has closely followed these developments in Bitcoin adoption, such as the growth of Bitcoin transactions in India, the Bitcoin Beach Brazil project, Bitcoin Ekasi in South Africa and many more, all clear examples of growing use in countries where it is needed. sovereign digital money. most.
Fink goes on to point out that developed markets like the United States are falling behind in comparison, leaving the cost of payments higher, in what may be a reflection of recent actions by the United States itself. crack down on big exchanges. Furthermore, the collapse of the banks that provided financial services to these exchanges has further stifled the industry.
“In particular, asset class tokenization offers the potential to boost efficiencies in capital markets, shorten value chains, and improve cost and access for investors,” Fink writes. “At BlackRock we continue to explore the digital asset ecosystem, especially the areas most relevant to our clients, such as permissioned blockchains and stock and bond tokenization.” Although it is discussing tokenization of existing assets, it is curious to consider whether BlackRock and other large financial institutions will see through the veil of the government’s response to recent bank collapses and see tokenization as the main use case for blockchain technology. . of healthy money
This, after all, was its first use case, in the form of Bitcoin.
“While the industry is maturing, there are clearly elevated risks and a need for regulation in this market,” Fink concludes. “BlackRock is committed to operational excellence and we plan to apply the same standards and controls to digital assets that we apply across our business.”