BlackRock Waiting for Crypto To Be Legit
November 3, 2018 1:46 pm
BlackRock, the largest asset manager in the world is putting a hold on Bitcoin ETF for now. The company says that it is waiting for cryptocurrencies to become legitimate. BlackRock manages around $6.4 trillion in assets for its clients.
Larry Fink, CEO, BlackRock like most of his Wall Street counterparts are more interested in the underlying technology behind cryptocurrencies – blockchain.
“I do see one day where we could have electronic trading for a currency that could be a store of wealth. But right not the world doesn’t need a store of wealth unless you need that store of wealth for things you should not be doing.”
Fink was recently present at the New York Times DealBook Conference in Manhattan.
The Securities and Exchange Commission (SEC) has also shared its doubts about Bitcoin ETF. The governing body hasn’t approved any applications so far. A letter was published back in January that pointed to “significant investor protection issues that need to be examined.”
Bitcoin was originally founded back in 2008 as a way to bypass banks and other government institutions for transactions. Fink says that this heightened level of independence will serve as a major downside for cryptocurrencies.
“It will ultimately have to be backed by a government. I don’t sense that any government will allow that unless they have a sense of where that money’s going for tax evasion and all of these other issues.”
Fink said that the anonymity of Bitcoin is another roadblock. The currency has been used on the dark web for the purchase of guns, drugs and other illegal goods. It is the go-to choice for criminals to carry out their activities.
Companies such as J.P Morgan Chase, IBM, Deloitte, Amazon, and Facebook are already working on private blockchain solutions for their business. This application, however, does not have anything to do with cryptocurrencies.