The conflict in Ukraine could accelerate the use of digital currencies. BlackRock CEO Larry Fink is convinced of this. In the annual letter to investors, the head of the world’s largest asset manager explained that “a less discussed aspect of the war is its potential impact on the acceleration of digital currencies”. The war, according to Fink, “will prompt countries to reevaluate their currency dependencies. Even before the war, several governments were trying to play a more active role in digital currencies and define the regulatory frameworks under which they operate. The US central bank for example, it recently launched a study to examine the potential implications of a US digital dollar.
A carefully designed global digital payment system can improve the settlement of international transactions by reducing the risk of money laundering and corruption. Digital currencies can also help reduce the costs of cross-border payments, for example when expatriate workers return their earnings to their families. “Above all, the money manager has opened up to a direct BlackRock assessment of the use of currencies:” As we see with growing interest from our customers, BlackRock is studying both digital currencies, stablecoins and underlying technologies to understand how they can help us serve our customers. ”
Speaking of the conflict, BlackRock’s number one then explained that the group moved “quickly to suspend the purchase of any Russian stocks in our active or indexed portfolios. In the past few weeks, I have spoken to countless interested parties, including our own. customers and employees, who are all trying to understand what could be done to prevent the capital from being distributed in Russia, “I add:” we believe this is the definition of our fiduciary duty. ”
Another key element addressed by Fink in the letter and then inevitably that of the energy transition. Stressing that he saw European policymakers promoting investments in renewable energy as an important component of energy security, Fink reiterated that “more than ever, countries that do not have their own energy sources will have to finance and develop them, which for many it will mean investing in wind and solar energy. ” Rising energy prices “will also significantly reduce the green premium for clean technologies and allow renewable energy, electric vehicles and other clean technologies to be much more economically competitive. energy at this level are also placing a terrible burden on those who can least afford it. We will not have a fair and just energy transition if they remain at these levels. ”
For Fink, considering how government planning has focused only on supply without addressing demand, “we need public policies to take a more holistic and long-term approach to global energy needs. Other challenges include increasing of the demand for renewable energy sources and the use of clean technologies, we need to consider what this means for the raw materials on which these green energy sources and technology depend. We will also need to accelerate investment in infrastructure to support greater use of energy and clean technology. For example, as consumer demand for electric vehicles accelerates, the public and private sectors will need to work together to build more charging stations to meet demand. ”
on behalf of our pipeline customers in the Middle East are a great example of how to help countries transition from dark brown to lighter brown as these Gulf nations use less oil for power generation and replace it with a cleaner base fuel. like natural gas “. In short, concludes Fink,” in the net zero crossing we will have to go from many shades of brown to shades of green. I remain optimistic about the future and continue to believe that our collective actions today can make a significant difference in the years to come. “(Copyright reserved)
