As central banks increase their gold purchases, Larry Fink, CEO of BlackRock, described both cryptocurrencies and gold as “assets of fear.”

BlackRock’s CEO emphasized that the growing concerns surrounding global financial stability are driving investors toward gold and crypto assets. He stated, “Owning crypto assets or gold are assets of fear,” during the Future Investment Initiative (FII) conference in Saudi Arabia, as reported by DWS News.

Fink added, “You own these assets because you’re frightened of the debasement of your assets,” expressing concerns about the financial and physical security of investments.

Following a recent plummet, gold prices dropped below $4,000 just after reaching an all-time high exceeding $4,377 a week prior, according to TradingView data.

The Need for Dollar Sales is Paramount

In discussing pivotal economic concerns in the U.S., Fink expressed that the country’s reliance on selling dollars to international investors is the most pressing issue, stating that 30% to 35% of Treasury sales currently go overseas. He highlighted the potential repercussions if this dependency were to shift, emphasizing the necessity of unlocking private capital.

At the event, Fink further elaborated on concerns that central banks are increasingly hoarding gold, indicating a significant transition in global finance this year.

Central Banks’ Core Inquiry

Fink noted that the primary question from central banks is the role that tokenization and digitalization will play in future economic landscapes.

He raised critical issues, such as the pace at which central banks should digitize their currencies and the effects on the U.S. dollar and payment systems. He remarked, “I think we spend so much time talking about AI. We’re not spending enough time talking about how quickly we’re going to tokenize every financial asset.”

Fink’s remarks align with his longstanding belief that traditional financial assets are likely to undergo tokenization in the coming decades.

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