btc-usdHe emphasized the continuous development of a trend where countries shift from holding reserves in US dollars to gold and bitcoin.Olumide Ades
Quick overview
- BlackRock’s Jay Jacobs highlights that central banks are diversifying their reserves due to geopolitical conflicts and uncertainty.
- Countries are increasingly shifting from US dollar reserves to gold and bitcoin as safe investment alternatives.
- Jacobs notes that the freezing of Russian central bank assets has prompted nations like China to rethink their financial strategies.
- He identifies geopolitical fragmentation as a significant global driver for the coming decades, leading to increased demand for alternative saving methods.
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BlackRock’s director of thematic and active ETFs, Jay Jacobs, pointed out that the diversification strategies employed by central banks in various nations are accelerating due to ongoing geopolitical conflicts and widespread uncertainty.
He emphasized the continuous development of a trend where countries shift from holding reserves in US dollars to gold and bitcoin.
Jacobs from BlackRock noted that Western Europe and North America have frozen $300 billion of Russian central bank assets. He argues that such situations have prompted China and other nations to reconsider their strategies.
Jacobs highlighted that after multipolarity, the key element worldwide that will focus on in the coming decades stems from BlackRock’s analysis: geopolitical fragmentation.
“We’ve identified geopolitical fragmentation as a key force that will be a global driver over the next few decades,” he remarked.
He added that bitcoin is increasingly seen as a safe investment alongside gold, while this scenario also boosts the demand for more volatile stock market assets.
“And it’s all because people look for assets with independent market behavior. We’ve seen significant inflows into gold ETFs, and we’ve seen significant inflows into bitcoin. Also, Jacobs explained,” he noted. Jacobs observed that recent global fragmentation has intensified the need for alternative saving methods.
“This whole diversification away from traditional assets towards gold and cryptocurrencies [… started three to four years ago,” he said.
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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