Bitcoin Makes US Dollar Less Relevant

Source: A video screenshot, Youtube / CNBC

While the most popular cryptocurrency, Bitcoin (BTC), is still an untested area, it can potentially develop into a global market and already make the US dollar less relevant, according to Laurence D. Fink, CEO of the world’s largest wealth manager. BlackRock.

During the Stephen C. Freidheim Symposium on Global Economy 2020 on December 1st, he answered a question about digital currencies.

“A digital currency has a real impact on the US dollar,” said Fink Bank of England Governor Mark Carney, who also participated in the discussion, appeared to agree with this statement.

According to the CEO, the digital currency makes the need for the US dollar less relevant.

“I’m not talking about Americans, I’m talking about international owners of dollar-based assets. The question I would be asking – does this change the need for the dollar as a reserve currency if they were a true digital currency that has been separated? based assets? ”he asked.

According to Fink, BTC is still an untested, thin, and relatively small market that could potentially one day develop into a global market.

For him, the fact that so many people are excited about it and want to learn about it is “a very powerful sign”.

The CEO argued that digital currencies help cut costs, but must be organized and “part of global government policy”.

“A lot of questions have to be answered before I can say that it’s real and alive. It certainly has the potential to develop into something real,” said Fink.

As previously reported, Rick Rieder, chief investment officer of Global Fixed Income at BlackRock, said that BTC “could largely replace gold” because BTC is “much more functional.”

At the end of last year, BlackRock had assets under management of $ 7.4 trillion.

At pixel time (07:08 UTC), BTC is trading at USD 18,954 and is down 2% in one day and nearly unchanged in a week. The price increased 37% in a month and 154% in a year.

While discussing with Fink, Carney joked about the importance of mentioning “the B word” as that “gives us the title” while other things they discussed about the impact of the coronavirus pandemic on global economic policy , will be far more important determining our future. “

Watch the full discussion below (Part “B” starts at 5:30 PM):

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