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 stated that crypto property like Bitcoin haven’t any intrinsic worth, native information company Yonhap reports Tuesday. The official stated that he expects extra value swings in the marketplace, stating, “It is rather tough to foretell the value, however its value can be extraordinarily unstable.”

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

“These property noticed a steep rise within the shortest time frame,” Lee acknowledged. “I’d say institutional traders’ evaluation of utilizing bitcoins as a hedge may very well 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 forex. “The financial institution is near finishing our evaluate of designs and related applied sciences relating to bank-controlled digital currencies,” he stated. 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 value plunging from above $58,000 to beneath $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 means of conducting transactions.”