BlackRock CEO doubts Bitcoin will ever become a currency

    2024.01.13 | exchangesranking | 104onlookers

    BlackRock CEO Larry Fink doubts the practicality of using Bitcoin (BTC) for everyday transactions, reiterating it should be publicly perceived as purely an asset class.

    In an interview with CNBC on January 11, Fink stated his belief in Bitcoin, viewing it as an alternative form of wealth storage rather than a contender to replace national currencies.

    “I don't believe it's ever going to be a currency. I believe it's an asset class.”
    BlackRock CEO Larry Fink appearing on CNBC on Jan 12. Source: CNBC/Youtube

    However, he does believe that central bank digital currencies (CBDCs) will come to fruition in the near future. 

    “I think we're going to create digital currencies, we're going to use technology for it. We're going to use a blockchain,” he stated.

    According to recent data from Cointelegraph, over 100 countries are exploring the topic of CBDCs, while there are 39 countries that have either a pilot, proof-of-concept, or launched CBDC initiatives.

    Related: Ether price jumps 20% vs. Bitcoin as BlackRock boosts Ethereum ETF bets

    Yet, when questioned about his stance on ARK Invest CEO Cathie Wood's most recent Bitcoin valuation predictions ranging from $600,000 to $1 million, Fink indicated price wasn’t his primary concern right now.

    "I haven't even thought about it," Fink stated, explaining that it hasn’t been a top priority for him, as he is mainly focusing on offering "an instrument that can store wealth," through its newly approved spot Bitcoin exchange-traded fund (ETF).

    “I think if it gets even close to that high, gold will represent even a bigger value. And let's be clear, if you think it's digital gold, there's going to be a reference point between gold and Bitcoin.”

    Meanwhile, in a separate interview with Fox Business on the same day, Fink clarified that the Bitcoin ETF will contribute to legitimizing an industry that has faced skepticism from the beginning.

    "The advent of the Bitcoin ETF is an example that we’re legitimizing it, we're creating more safety," he stated.

    This follows news on January 10 that the United States Securities and Exchange Commission (SEC) approved BlackRock’s spot Bitcoin ETF application, among ten other applications, to start trading in the U.S.

    Furthermore, on January 11, Cointelegraph reported that BlackRock had a record of 575 approvals to one ETF rejection in its history, and now with spot Bitcoin ETF approval, it is 576-1.

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