BlackRock BLK chair and CEO Larry Fink says developed markets like the U.S. are lagging behind in innovation, leaving payment costs much higher.
Here’s what he said in his annual letter to investors:
“In many emerging markets – like India, Brazil and parts of Africa – we are witnessing dramatic advances in digital payments, bringing down costs and advancing financial inclusion. By contrast, many developed markets, including the U.S., are lagging behind in innovation, leaving the cost of payments much higher.”
Fink also discussed the hype around digital assets in the financial services industry. While Bitcoin BTC/USD has been grabbing headlines, Fink noted that the operational potential of underlying technologies in the digital assets space could have exciting applications for the asset management industry.
Tokenization of asset classes could drive capital market efficiencies, shorten value chains, and improve cost and access for investors. BlackRock is exploring the digital assets ecosystem, with a focus on permissioned blockchains and tokenization of stocks and bonds, areas most relevant to their clients.
“We believe the operational potential of some of the underlying technologies in the digital assets space could have exciting applications.”
While Fink sees the benefits of digital asset technologies, he also highlights the need for regulation to mitigate the risks associated with this developing market. BlackRock is committed to applying the same standards and controls to digital assets as they do across their business.
Fink’s letter emphasizes the importance of catching up to emerging markets in digital payment innovation to cut costs, while the asset management industry can leverage digital asset technologies to drive efficiencies. However, regulation is crucial to mitigate risks.
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This article has been originally published at: https://www.benzinga.com/markets/cryptocurrency/23/03/31399558/us-is-lagging-behind-in-innovation-blackrock-ceo-larry-fink-slams-in-investor-letter?SNAPI