BlackRock CEO Larry Fink, who once dismissed Bitcoin as a means for money laundering, has changed his tune and embraced the cryptocurrency to protect oneself from oppressive governments and economic instability. In a series of media interviews on Friday, Fink praised Bitcoin as a potential long-term store of value and a hedge against government manipulation of the currency.
Fink’s comments came after the U.S. Securities and Exchange Commission (SEC) approved the first batch of spot Bitcoin ETFs on Wednesday, including one from BlackRock, the world’s largest asset manager. Fink said the approval of exchange-traded funds was a sign of the cryptocurrency’s legitimacy and safety.
Fink believes the arrival of exchange-traded funds shows we’re making it legitimate and safer. He mentioned on Fox Business that Bitcoin ETFs will simplify investor access to the cryptocurrency, eliminating the need to navigate the technical hurdles of buying and storing it.
Fink also said that Bitcoin could be an attractive asset for people living in countries where they fear their government, future, or currency. He cited China’s ban on cryptocurrencies because some people might prefer cryptocurrency over fiat money.
Let’s be clear: if you’re in a country where you’re fearful of your government—if you’re in a country where you’re fearful of your future, fearful of your government, or you’re frightened that your government is devaluing its currency by too much deficits, you could say this is a great potential long-term store of value, Fink said.
Bitcoin’s Price Remains Volatile Despite ETFs
Fink’s endorsement of Bitcoin is a remarkable turnaround from his previous stance. In 2017, he joined JP Morgan CEO Jamie Dimon, a notorious Bitcoin critic, denouncing the cryptocurrency as an “index of money laundering.” He also said that he did not believe in Bitcoin and that it was not a serious investment.
Fink acknowledged that he had a different interpretation of Bitcoin three years ago but said he came around to it during the pandemic. He said he saw a lot of merit and opportunity in cryptocurrencies but also admitted that it was still a debatable store of value.
Three years ago, Fink shifted his view and began seeing it differently. He believes it has a lot of value and potential. According to Fink, cryptocurrencies serve as an excellent store, sparking debates on whether it’s a good one.
However, Fink’s positive view of Bitcoin did not translate into a bullish prediction for its price. He said the issue now was whether people would believe that BTC could be an asset that could cross borders and be accepted globally.
Related Reading | Ethereum’s May ETF Fate Hangs In Balance As JPMorgan Casts Doubt On SEC Approval