Central Banks Shift Attention to Digital Assets Amid Gold and Dollar Concerns
BlackRock CEO Larry Fink has revealed that central banks around the world are increasingly questioning how tokenization and digitization will reshape the global financial system. Speaking at the Future Investment Initiative (FII) conference in Saudi Arabia, Fink described both gold and cryptocurrency as the “assets of fear,” as investors hedge against growing uncertainty in traditional markets.
“Owning crypto assets or gold are assets of fear,” Fink said during the panel discussion. “You own these assets because you’re frightened of the debasement of your wealth and the erosion of asset value.”
His comments followed a steep correction in the gold market, where spot prices fell below $4,000 per ounce on Monday after recently touching record highs near $4,377, according to BITXJournal data. Analysts note that the pullback reflects investor hesitation amid mixed macroeconomic signals and concerns over tightening global liquidity.
Central Banks’ Growing Concern: Tokenization and the Future of Money
Fink highlighted that one of the top questions raised by central banks today revolves around the pace and scope of tokenization — the process of digitizing traditional financial assets using blockchain technology.
“The biggest question from central banks is what role tokenization and digitization will play,” he said. “We spend so much time talking about AI, but not enough time on how quickly we’re going to tokenize every financial asset.”
According to Deutsche Bank data, gold now accounts for 24% of central bank reserves as nations diversify away from the U.S. dollar. Fink warned that the U.S. economy’s reliance on foreign demand for Treasury debt remains a critical vulnerability.
“We still need 30% to 35% of all Treasury sales going overseas,” he said. “If that ever changes, it will have a multiplier effect on global liquidity.”
Gold, Crypto, and the Rise of Tokenized Finance
Fink’s comments reflect an emerging realignment in global asset preferences, where both gold and Bitcoin are viewed as defensive stores of value amid inflation fears and geopolitical risks. Yet the shift toward tokenized finance may ultimately redefine how institutions store, transfer, and settle assets.
“Most countries are ill-prepared for how fast this transformation is coming,” Fink added. “Technology is changing everything — and financial systems must adapt.”
BlackRock, which manages over $10 trillion in assets, has positioned itself at the forefront of this transformation. Its iShares Bitcoin Trust now holds over 805,000 BTC, making it one of the world’s largest indirect holders of Bitcoin.
With gold slipping and digital assets rising, Fink’s message is clear: the next phase of global finance will be built not just on commodities or currencies — but on tokenized, digital infrastructure capable of reshaping how value moves worldwide.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.