With the BRICS bloc driving a global shift away from the greenback, BlackRock has recently opted to use Bitcoin as an inflation hedge amid concerns with the US dollar. Indeed, Bloomberg reported that the asset management firm was given advanced notice by the Bureau of Labor Statistics (BLS) regarding inflation figures for March.
Moreover, the development notes that BlackRock opted to utilize the digital asset as protection. This is an important series of events that assures how the $9 trillion asset management firm perceives the cryptocurrency concerning the dollar and its potential negative response to inflation figures.
Also Read: BlackRock Adds $72.8 Million Worth of Bitcoin Before Halving
BlackRock Opts for Bitcoin as Inflation Hedge
Over the last year, the global finance sector has seen a rather interesting shift take place. Although the US dollar’s position atop global currencies is secure, there have been notable diversification efforts. Moreover, various Central Banks have sought to protect themself from its impending failure, while embracing technology opportunities in digitized platforms.
Subseuqnlety, as BRICS has led many of these efforts, BlackRock has been the latest prominent firm to use Bitcoin as an inflation hedge as the USD has worried many. Specifically, data shows that the asset management firm was warned of rising inflation data, to which it embraced its bullish crypto stance.
Also Read: BRICS: Major Update On Russia’s Economy Announced
This coincides with BlackRock’s CEO’s perspective on the asset in the long term. Speaking to Fox News, Fink said he was “very bullish on the long-term viability of Bitcoin.” Moreover, he said that he would never have predicted such. positive reaction when the firm filed for its Spot Bitcoin ETF.
However, BlackRock’s activity creates a rather interesting situation. It presents an immensely important asset management firm seeking a haven in cryptocurrencies. Moreover, it coincides with international work toward amplifying Central Bank Digital Currencies (CBDC) and similar projects.
Furthermore, gold has seen its value skyrocket due in large part to Central Bank demand. Although USD has proven its strength, it is beginning to develop viable contenders. Over the next several years, this focus on digital assets and similar stores of value could create a very different conversation.
