While there appear to have been “misbehaviors” by the crypto exchange FTX collapsed, the technology behind cryptocurrency remains relevant for the future, according to Larry Fink, CEO of the main investment fund BlackRock.
“We will have to wait to see how this all plays out” with FTX, Fink said quoted by Reuters news agency. “I mean, now we can make a whole trial and it looks like there’s been misconduct of major consequence.”
The executive said during an event hosted by the New York Times DealBook. At the same time, Fink said he believes the majority of crypto businesses “will not exist” in the near future.
Despite all the problems triggered by the FTX bankruptcy, Fink said he thinks blockchain technology “will be very important.”
“I believe the next generation for markets and the next generation for securities will be the tokenization of securities,” the businessman said.
Regarding the economic outlook for the US economy, Fink paints a gloomy picture, referring to rising inflation, high interest rates, as well as limited capacity for fiscal stimulus.
“We’re actually going to enter a period of more so-called malaise,” the executive said. “We’re not going to have an economy based on real growth that we’re used to.”
It is worth noting that the same gloomy forecast for the US economy recently offered by Tesla and Twitter CEO Elon Musk.
Billionaire businessman called the current economic style in America “hitting” in response to a tweet by user vincentyu.eth who says he “expects a real economic recession in 2023” and advises others to prepare “for the macro storm that lies ahead of us.” Musk believes that the United States could be headed for a major recession in the near future, and has called on the US Federal Reserve (FED), the country’s central bank, to cut interest rates immediately.
“The trend is about. The Fed should cut interest rates immediately. They increase the likelihood of a severe recession,” he said. tweeted.
“Ironically the Fed continues to project positive GDP growth for next year despite all the obvious signs. But they did the same thing in 2008. As always they will panic cut rates after the impact of the recession here & then blame unforeseen factors,” Sven Henrich, founder and strategist NorthmanTrader main market, agreed with Musk.
