For the founder of Digital Currency Group (DCG), parent company of Grayscale, CoinDesk and other giants, the BlackRock entry into Bitcoin it means that many central banks will be able to easily invest in the cryptocurrency. As such, Barry Silbert believes that the world’s largest asset manager can attract much more than public companies to the cryptocurrency sector, allowing governments to store bitcoin as they do gold and other international assets. Therefore, analyzes that expect a new all-time high for Bitcoin thanks to BlackRock they can show even better results with this new view. In the end, the potential investment in Bitcoin by a Central Bank goes far beyond money, being a matter of recognition.
BlackRock and the central banks
In March 2020, the United States Federal Reserve hired BlackRock to manage the purchase of billions of dollars in bonds, which served as an effort by the Federal Reserve to stabilize the economy. Also on this date, the Central Bank of Canada chose the same administrator to manage the purchase of assets by it. While it doesn’t reveal the names of its clients on its website, BlackRock cites associations with BC and other government entities, demonstrating its global strength.
“The Official Institutions Group (OIG) partners with central banks, sovereign wealth funds, finance ministries, future generation funds and multilateral organizations. Offer a range of customized solutions and global investment management, risk management and advisory services”notes the website of BlackRock, a $10 trillion asset manager.
Do central banks invest in bitcoin?
BlackRock’s entry into Bitcoin, with its partnership with Coinbase and, the following week, with the creation of a private investment fund, comes as the US and other world powers discuss the laws surrounding this industry. So, with so much influence in politics, his exposure to Bitcoin at a critical time suggests that BlackRock knows a little more about the SEC, CFTC and other decisions. Is even the Fed interested, or at least willing to hear about the advantages of buying Bitcoin?
“Fun fact: BlackRock advises and invests money for many of the world’s central banks. Another curiosity: central banks now have an easy and safe way to invest in bitcoin”writes Barry Silbert, founder of Digital Currency Group after BlackRock launched his Bitcoin private fund.
Fun fact: BlackRock advises and invests money for many of the central banks around the world Another fun fact: Central banks now have an easy, safe way to invest in bitcoinhttps://t.co/Fd9OsXsafr— Barry Silbert (@BarrySilbert) August 11, 2022
Since many investors compare bitcoin to gold, which provides better levels of scarcity, divisibility and portability, nothing prevents central banks from using this cryptocurrency as part of their international reserves. The Central Bank of the United States itself holds the largest amount, over 8 tons of gold, valued at over $500 billion SUD. Following is the Bundesbank, BC of Germany with 3.3 tons of gold. Anyway, the amounts would be the most irrelevant thing here. After all, an investment made by a BC of a world power would be the biggest recognition Bitcoin gained from its biggest enemies.