There has been a lot of speculation in recent days that Donald Trump is considering appointing Larry Fink, CEO of BlackRock, as Secretary of the Treasury. These rumors have generated a lot of interest, especially in the context of Fink’s changing attitude towards cryptocurrencies. However, the former US president has firmly denied these reports, dispelling all doubts. Could Trump still change his mind, and what would Larry Fink as US Secretary of the Treasury mean for the cryptocurrency industry?
Larry Fink – From Skeptic to Cryptocurrency Advocate
Larry Fink, as the head of one of the largest asset managers in the world, BlackRock, has long been a critic of cryptocurrencies. In the past, he has expressed doubts about their durability and usefulness as a means of payment. Fink has often emphasized that cryptocurrencies are used mainly for speculation and have no real value. Moreover, in the years 2017-2020, he indicated that both Bitcoin and other altcoins are mainly used for money laundering and financing criminal and terrorist activities.
However, in recent years, Larry Fink has begun to change his approach. What’s more, the BlackRock CEO has begun speaking about cryptocurrencies in a more positive light in interviews, acknowledging that they could play an important role in the future of finance. Fink has also noted that the blockchain technology that cryptocurrencies are based on has the potential to revolutionize many sectors of the economy.
The revolution in Fink’s perception of BTC and other cryptocurrencies came in 2023, when it became clear that BlackRock intended to file an application with the SEC to approve spot ETF funds based on bitcoin. At that time, it even seemed that Larry Fink had been replaced, because he speaks only in superlatives about BTC. On CNBC, he publicly admitted that BTC should be considered the digital equivalent of gold.
What if Larry Fink became Treasury Secretary?
Although Donald Trump has already dispelled speculation about appointing Fink as US Treasury Secretary, it is worth conducting a thought experiment that borders on prediction. Why? Because in politics, it has often been the case that despite sincere assurances and denials, things have happened that seemed impossible 😉
If Larry Fink were to be appointed Secretary of the Treasury, it could have a significant impact on US financial policy, especially in the context of cryptocurrencies. Here are some potential scenarios:
Liberalization of cryptocurrency regulations
Larry Fink, as a proponent of financial innovation, could seek to liberalize cryptocurrency regulations. Perhaps his goal would be to create a more favorable regulatory environment that would encourage the development of the cryptocurrency and blockchain markets. This could include easing existing restrictions and promoting initiatives that support cryptocurrency adoption. It would also mean reining in the SEC and Gary Gensler’s fervor, allowing the cryptocurrency sector to thrive in the U.S. without the current regulatory nervousness.
Integration of blockchain technology in public administration
Under Fink’s leadership, the Treasury Department could begin exploring blockchain applications in government. The transparency and security blockchain offers could revolutionize how government stores and processes data, improving efficiency and citizen trust. Fink has long been a blockchain advocate, and has even noted that he was a skeptic of Satoshi Nakamoto’s cryptocurrency. Bringing blockchain to the U.S. government would be a major accomplishment.
Promoting CBDC, or Digital USD
Larry Fink could also promote the idea of a digital USD, or a central bank digital currency (CBDC). The introduction of a digital USD could modernize the US financial system and enable faster and cheaper transactions. In addition, it could strengthen the position of the US dollar in the global financial market. China is experimenting very hard with CBDC, but in the US, a digital USD is still considered something extremely bad and dangerous for American society.
Impact on Global Cryptocurrency Regulation
As a leader in the global economy, the decisions of the United States have a huge impact on the rest of the world. If Larry Fink were to become Secretary of the Treasury and introduce friendly regulations for cryptocurrencies, other countries could follow suit. This could lead to a more consistent and friendly environment for cryptocurrencies internationally. This in turn would accelerate adoption similar to what is happening in South America, especially in El Salvador.
Is Trump’s decision really final?
Although Larry Fink will not be the Treasury Secretary in the Trump administration, his changing attitude towards cryptocurrencies is worth noting. Fink’s evolution from skepticism to acceptance of the potential of cryptocurrencies and blockchain technology reflects a broader trend among financial leaders around the world. While the rumors have been denied at this time, it is possible that future appointments and policy decisions will have an impact on the future development of the cryptocurrency market.
