Larry Fink, the CEO of the world’s largest asset manager BlackRock, believes the ongoing Russia-Ukraine crisis has boosted the case for digital currencies as a tool of settlement for international transactions.
In a letter to shareholders, Fink noted that the ongoing war would force nations to reassess their currency dependencies, which eventually could make way for a global digital payment network, reported Reuters. He said the war has put an end to the globalization forces at work over the past 30 years.
Fink’s observation about the boost in the digital currency market is quite spot on, as trade sanctions on Russia have already led many countries that import oil and gas from there to look for alternate payment networks beyond centralized SWIFT. India is reportedly developing a direct INR payment gateway to buy energy supplies while discussion about a digital payment network is also on the rise.
"A global digital payment system, thoughtfully designed, can enhance the settlement of international transactions while reducing the risk of money laundering and corruption," Fink said.
According to rumors, Ripple partner The Clearing House is in talks with Wells Fargo to develop a SWIFT alternative.
Russian local Bitcoin trading volume has also registered a spike in March after seeing a constant decline over the past year. That said, prior to the Ukraine invasion, the country was looking to regulate the cryptocurrency market positively.
Related: Crypto trading in rubles falls even as ECB warns again on sanctions
Ukraine, on the other hand, legalized cryptocurrencies on March 16, 2022, after receiving millions in crypto aid from around the world. The war-torn nation has already raised over $100 million in crypto donations, which they have used to reinforce their army and buy supplies.
Cryptocurrencies over the years have proven to be a great hedge against troubled times but with the ongoing conflict in Ukraine, it has become a prominent tool for international settlements and sending out quick relief.
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