As the ongoing crypto craze persists, industry leaders expressed concerns about the future of the world’s largest crypto asset by daily trading volume, Bitcoin. Following the approval of the spot, Bitcoin exchange-traded funds (ETFs), key market players have shifted their focus on BTC due to its multifaceted nature.
In an exclusive interview with the CNBC team, the chief executive of BlackRock, Larry Fink, expressed his hesitation in using Bitcoin in day-to-day transactions. The CEO claimed that Bitcoin should be grouped under asset class.
BlackRock CEO Doubts If Bitcoin Will Become Currency
Based on the features of Bitcoin, Fink argued that BTC should be considered as an alternative measure of value rather than a national currency. The CEO explained that Bitcoin lacks adequate monetary value to replace the existing currency. This implies that BTC will serve best as alternative wealth storage rather than a national currency.
After analyzing the history of Bitcoin, Fink admitted that BTC will never be a currency. He anticipates Bitcoin to be an asset class. During the interview, the CNBC host requested Fink to project the price movement of Bitcoin.
Earlier this month, ARK Invest chief executive Cathie Woods predicted that Bitcoin’s market value will reach $600K to $1 million. In response to the projected BTC market performance, Fink underlined that Bitcoin price was not the primary concern.
Fink admitted that he has not thought about the Bitcoin price movement lately. The CEO confessed that he has been exploring ways to offer Bitcoin as wealth storage. He believes that BlackRock newly approved spot Bitcoin ETF, will allow investors to store their wealth on BTC.
Future of Bitcoin
The executive anticipates Bitcoin will compete with gold as a wealth storage option. Apart from this, the BlackRock CEO envisioned the failure of central bank’s digital currency (CBDC). He lamented that the CBDC will fail to attain its primary objective due to the changes in the financial ecosystem.
Despite the remarkable effort to develop the CBDCs, Fink projects that various industries will adopt this technologies used to build digital currency such as blockchain. In the latter the CEO anticipates that the launching of the CBDC will promote blockchain use cases.
Interestingly, the BlackRock CEO remark on CBDC came when over 100 countries intensified their efforts to create the digital currency. According to Fink, a CBDC is a digital version of a country’s local currency issued by the central bank.
Currently, around 39 central banks are conducting pilot trials for the CBDC to boost the accessibility of financial products. The quest to promote financial inclusivity compelled the central banks to collaborate with crypto and fintech companies to support the ongoing CBDC projects.
BlackRock CEO Calls For Legitimate Crypto Trading
In a separate interview, the BlackRock CEO told Fox Business that the approval of the Bitcoin ETF will support legitimizing the crypto sector. The executive confessed that the crypto industry became the lightning rod among global regulators for years.
Despite the criticism, the CEO projects that approving Bitcoin ETFs will support legitimate business practices in the crypto industry. Fink’s remarks coincides with the approval of dozens of Bitcoin ETF applications from giant asset managers, including BlackRock, Fidelity, and ARK Invest by the US Securities and Exchange Commission (SEC).
Following the approval of the Bitcoin ETFs, institutional investors will gain exposure to BTC even without engaging in the buying and selling digital assets.