The problems for the dollar are many, and BlackRock uses Bitcoin to protect itself from them

20.04.2024 12:00 2 min reading
The problems for the dollar are many, and BlackRock uses Bitcoin to protect itself from them

With the BRICS alliance spearheading a global retreat from the US dollar, BlackRock recently turned to Bitcoin as an inflation hedge amid dollar concerns.

Bloomberg reported that the asset management giant received advance notice from the Bureau of Labor Statistics (BLS) about inflation data in March, prompting BlackRock to use the digital asset as a precautionary measure. The strategic move sheds light on how the $9 trillion firm views the cryptocurrency in relation to the dollar and its potential response to inflationary pressures.

The past year has seen intriguing developments in the global financial landscape. Although the US dollar remains dominant among global currencies, diversification efforts are notable. In particular, central banks have sought to hedge against the dollar's perceived vulnerabilities while exploring opportunities in digitized platforms.

In line with these trends, BlackRock's adoption of Bitcoin as an inflation hedge reflects growing concern about the stability of the US dollar. The asset management firm's proactive stance follows warnings of rising inflation, confirming its bullish view on cryptocurrencies.

BlackRock CEO Larry Fink expressed optimism about BTC's long-term prospects, highlighting its viability as a financial asset. In an interview with Fox News, Fink revealed his bullish stance on Bitcoin — a stance he hadn't anticipated when the firm filed for its spot Bitcoin ETF.

The significance of BlackRock's move lies in its status as a major player seeking refuge in cryptocurrencies, which coincides with global efforts to strengthen central bank digital currencies (CBDCs) and other such initiatives.

Meanwhile, gold saw a sharp jump in value, largely driven by demand from central banks. As the US dollar maintains its strength, emerging competitors are gaining ground. In the coming years, the focus on digital assets and alternative stores of value could significantly change the financial landscape.


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