The top executive of the world’s largest asset manager says that developed markets are not catching up in terms of financial innovation.
In his annual letter to investors, BlackRock chairman and CEO Laurence Fink says that interesting things are happening in the crypto space even after the collapse of FTX and other firms in the industry.
“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.”
But despite the progress seen in emerging nations, Fink says developed markets including the US continue to face high payment costs due to failure to keep up with advances in digital payment.
“By contrast, many developed markets, including the US, are lagging behind in innovation, leaving the cost of payments much higher.”
Fink says crypto needs regulation given the elevated risks involved with the nascent asset class, but he says digital asset technology has the potential to transform financial markets.
“For the asset management industry, we believe the operational potential of some of the underlying technologies in the digital assets space could have exciting applications. In particular, the tokenization of asset classes offers the prospect of driving efficiencies in capital markets, shortening value chains, and improving cost and access for investors.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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