BlackRock CEO Larry Fink said investors are returning to gold and cryptocurrency out of fear that their assets are losing value amid growing concerns over global financial stability.
“Owning crypto assets or gold are assets of fear,” BlackRock CEO Larry Fink said At the Future Investment Initiative (FII) conference in Saudi Arabia, according to a DWS News livestream.
“You own these properties because you fear the debasement of your properties,” Fink said, adding that investors are concerned about the financial and physical security of their properties.
Fink’s comments came after gold took another slide on Monday, with spot prices falling below $4,000 after Touching an all-time high above $4,377 a week ago, according in TradingView data.
The need for dollar sales is the “biggest issue”
Addressing the main concerns of the US economy, BlackRock’s Fink said that his biggest concern is the dependence of the US on the sale of dollars to international investors.
“We’re still a country that needs 30% to 35% of all our Treasury sales to go overseas, and, to me, that’s the biggest issue right now,” Fink told a panel at FII.
“If that changes, it has a multiplier effect because of the reliance on selling dollar-based assets to foreigners,” he added, citing the need to unlock private capital.
At the event, Fink also discussed the biggest concerns of global central banks, which have Additional hoarding of goldmarking a major emerging shift in global finance this year.
The biggest question on Central Banks
“I would say the biggest question from central banks is what role will tokenization and digitization play,” Fink said, referring to the many challenges central bankers around the world face in navigating the emerging tokenization industry.
He highlighted some of the pressing questions, such as how quickly central banks should digitize their own currencies, the implications for the US dollar and the impact on payment systems, among others.
“I think we’ve spent too much time talking about AI. We haven’t spent enough time talking about how quickly we’re going to tokenize every financial asset,” said the BlackRock CEO, adding:
“And I think it’s going to happen all over the world.
Fink’s latest take on the role of tokenization, as well as assets like crypto and gold, aligns with his long-term view that all Traditional financial assets are likely to be tokenized In the coming decades.
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Besides being the largest investment company in the world, BlackRock is also among the largest holders of Bitcoin (BTC), even if only on behalf of its clients.
As of Monday, BlackRock’s Ishares Bitcoin Trust Fund held 805,806 BTC – about 26% more than entire BTC Holdings of Strategythe world’s largest public holder of Bitcoin.
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