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

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

Financial institution of Korea Governor Lee Ju-yeol mentioned that crypto belongings like Bitcoin haven’t any intrinsic worth, native information company Yonhap studies Tuesday. The official mentioned that he expects extra worth swings available on the market, stating, “It is rather tough to foretell the value, however its worth will probably be extraordinarily unstable.”

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

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

In keeping with The Korea Occasions, Lee claimed that the BOK is progressing with its central financial institution digital foreign money. “The financial institution is near finishing our evaluate of designs and related applied sciences concerning bank-controlled digital currencies,” he mentioned. As beforehand reported, the financial institution issued a e book on authorized points surrounding CBDCs in early February.

Bitcoin noticed a steep correction on Feb. 22, with its worth plunging from above $58,000 to under $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 method of conducting transactions.”