The confrontation between Russia and Ukraine, according to Larry Fink, Chief Executive Officer of BlackRock Inc, might help boost the adoption of cryptocurrencies to settle international transactions.
How much have volumes increased or decreased in Q4 2021?
Countries will reconsider their reliance on traditional currencies, shifting their attention to cryptos and stablecoins in the process. “A well constructed global digital payment system can improve the settlement of international transactions while lowering the danger of money laundering and corruption,” he said.
“Over the last several weeks, I’ve spoken with innumerable stakeholders, including our clients and employees, who are all trying to figure out what can be done to prevent funds from being deployed to Russia,” he continued. This, we believe, is the definition of our fiduciary responsibility.”
The Russia-Ukraine crisis, according to a letter written by the Chairman and CEO of the $10 trillion asset management on Thursday, has put an end to global forces that have been in place for the past 30 years.
He added that access to global financial markets is a privilege, not a right, and that following Russia’s invasion of Ukraine, BlackRock paused the purchase of Russian assets in its active index portfolio.
“While corporations’ and consumers’ balance sheets are robust now, providing them with greater cushion to weather these challenges,” Fink noted, “a large-scale reorientation of supply chains will inevitably be inflationary.”
Indebtedness to Russian Commodities
According to numbers released by BlackRock Inc., the asset manager’s entire client exposure to Russia has decreased to less than $1 billion from $8 billion before the Russian invasion of Ukraine provoked Western sanctions and the closing of the Russian stock market earlier this month. “Energy security has joined the energy transition as a top global priority,” Fink added, referring to the spike in energy prices across the board as a result of the Russian government’s sanctions.