During an interview with CNBC’s Squawk Box, the executive mentioned the importance of democratizing the exchange of foreign currencies in cross-border transactions. Currently, organizations will charge users from 5 to 10 percent if they want to transact their money globally. The problem lies in the fees of the interchange, he said.
To resolve the problem, Fink said the globe should focus on developing technology, not a global-scale currency such as Libra.
“I actually believe that the idea about Libra — I don’t think we need to create a new currency, but the technology to instantaneously calibrate all the currencies. That should be done.”
While some aim at reducing operating fees using Libra, Fink suggests incorporating a particular technological mechanism in each transaction:
“You don’t need a Libra. You have computers that can monetize and calibrate euro to dollar instantaneously for a couple basis points.”
Recently, Japan and many other countries have reportedly viewed Facebook Libra with extreme mistrust. Ahead of the G7 summit, Japan will be placing the crypto offer under a microscope to determine just how big of a threat it poses. The country is taking this issue so seriously, in fact, that it is involving three government bodies in the matter of scrutinizing Facebook Libra.