BlackRock CEO Larry Fink predicts the Russian invasion of Ukraine may boost the adoption of cryptocurrencies as a shift in the foreign transaction settlement has been noticed from forex companies and banks to digital and crypto currencies. He believes crypto coins like bitcoin, ether and DOGE could be looked at as settlement tools.
The Russia-Ukraine war is forcing nations to rethink dependencies on traditional and fiat currencies. There is a high probability of crypto adoption as an alternative as the interest of clients for financial companies has increased several folds lately in stablecoins and digital currencies. BlackRock is currently studying the benefits and usefulness of the segment.
Fink added that a globally well-designed and digital currencies-based payment system may help in improving international transaction settlements. The new worldwide system can improve the existing system and simultaneously reduce corruption as well as money laundering.
Russia started invading Ukraine on February 24 and the conflict is now in the second month amid a couple of failed peace talks between the two nations. The Western allies have imposed several sanctions on Russia including a ban on imports of oil and gas as well as the removal of Russian banks from the international SWIFT payment platform.
The ban has developed a fuel crisis in European countries and the United Kingdom. This has resulted in an increase in the prices of fuel. Inflation is increasing at a rapid pace and it is assumed strict actions could be taken by the central banks and policymakers.
The Russian troops, tanks and airstrikes have destroyed several key cities and towns of Ukraine leading to the displacement of millions of citizens and taking refuge in neighboring countries including Poland.
Heavy fighting is being continued in Izyum city. Russia has carried out multiple strikes on the fuel depots following its retreat from the northern part of the country. It has refocused to take control over Luhansk and Donetsk regions.
Meanwhile, the Ukrainian president has warned the world may face a food crisis blaming Russia to use hunger as a weapon as the attacks are destroying the agricultural infrastructure of the country and simultaneously the ports are being blocked. Most countries including the northern part of Africa heavily rely on Ukrainian wheat.
He added the primary objective of Russia is to make food prices jump high to destabilize other countries as well as to colonize Ukraine.
In the latest update over the ban on oil and gas, Japan has opted out from it and announced lately to resume the imports.