Bank of Korea chief says crypto has no intrinsic value, expects volatility

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Amid a major downward correction in the cryptocurrency market, the pinnacle of South Korea’s central financial institution is skeptical about digital currencies like Bitcoin (BTC).

Financial institution of Korea Governor Lee Ju-yeol stated that crypto property like Bitcoin haven’t any intrinsic worth, native information company Yonhap reports Tuesday. The official stated that he expects extra worth swings in the marketplace, stating, “It is vitally tough to foretell the value, however its worth will probably be extraordinarily unstable.”

Talking on the Nationwide Meeting, Lee additionally addressed doable causes behind the latest sharp crypto rally, which led Bitcoin to become a $1 trillion asset. The BOK governor cited a lot of elements together with international considerations over extreme inflation, rising institutional curiosity, in addition to a large $1.5 billion Bitcoin purchase by Elon Musk’s Tesla.

“These property noticed a steep rise within the shortest time frame,” Lee acknowledged. “I might say institutional traders’ evaluation of utilizing bitcoins as a hedge could possibly be interpreted as one other issue.” 

In keeping with The Korea Instances, Lee claimed that the BOK is progressing with its central financial institution digital foreign money. “The financial institution is near finishing our overview of designs and related applied sciences relating to bank-controlled digital currencies,” he stated. As beforehand reported, the financial institution issued a book on legal issues surrounding CBDCs in early February.

Bitcoin noticed a steep correction on Feb. 22, with its worth plunging from above $58,000 to below $48,000. United States Treasury Secretary Janet Yellen criticized Bitcoin in an interview on Monday, stating that the world’s largest cryptocurrency is “extraordinarily inefficient manner of conducting transactions.”