Financial institution of Korea chief says crypto has no intrinsic worth, expects volatility

Amid a major downward correction in 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 belongings like Bitcoin don’t have 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 will likely be extraordinarily unstable.”

Talking on the Nationwide Meeting, Lee additionally addressed attainable causes behind the current sharp crypto rally, which led Bitcoin to become a $1 trillion asset. The BOK governor cited plenty of elements together with international issues over extreme inflation, rising institutional curiosity, in addition to a large $1.5 billion Bitcoin purchase 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 might be interpreted as one other issue.” 

Based on The Korea Instances, Lee claimed that the BOK is progressing with its central financial institution digital forex. “The financial institution is near finishing our evaluation 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 value 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 approach of conducting transactions.”