'Developed markets are lagging behind in digital payments', says BlackRock CEO.

2023 Mar 18

Larry Fink, CEO of US investment firm BlackRock, highlighted the potential of digital assets and tokenisation in the asset management industry in his annual internal letter.

The letter was published on 15 March and covered a range of topics that have caught the company's attention over the past year, including digital assets. Mr Fink stressed that, despite the collapse of the FTX, interest in these types of assets has grown and persisted.

He also noted that there have been 'interesting developments' in the sector beyond the transient boom. In particular, he pointed to the 'dramatic advances' in digital payment solutions that are facilitating financial inclusion in many emerging markets, such as India, Brazil and Africa.

However, according to Fink, the pace of innovation between emerging markets and developed countries is not the same.

'In contrast, in many developed markets, including the US, innovation has been slow and the cost of payments has been very high.'

BlackRock is currently one of the world's largest asset managers, managing approximately USD 8 trillion in assets. Mr Fink said the asset management industry has the potential to realise "exciting applications" of the technology underlying these digital asset innovations.

Specifically, they assessed the tokenisation of asset classes with the potential to 'increase the efficiency of capital markets, shorten the value chain and improve costs and access for investors'.

Fink's statement concluded with a reference to the risks and the need for regulation in the virtual currency sector, but nevertheless pointed out that the company would be looking into the potential of further digital assets in the future.


Source: https://jp.cointelegraph.com/news/developed-markets-lagging-behind-in-digital-payments-blackrock-ceo