Sunday, February 28, 2021

Lender of Korea main claims crypto has no intrinsic benefit, expects volatility

Amid a big downward correction in the cryptocurrency industry, the head of South Korea’s central lender is skeptical about electronic currencies like Bitcoin (BTC).

Bank of Korea Governor Lee Ju-yeol stated that crypto assets like Bitcoin have no intrinsic worth, area information company Yonhap stories Tuesday. The formal explained that he expects much more cost swings on the industry, stating, “It is pretty hard to predict the value, but its rate will be very volatile.”

Speaking at the Countrywide Assembly, Lee also addressed possible causes powering the recent sharp crypto rally, which led Bitcoin to turn into a $1 trillion asset. The BOK governor cited a amount of elements which include global fears above excessive inflation, rising institutional curiosity, as perfectly as a huge $1.5 billion Bitcoin acquire by Elon Musk’s Tesla.

“These assets noticed a steep rise in the shortest time period of time,” Lee stated. “I would say institutional investors’ assessment of using bitcoins as a hedge could be interpreted as a different variable.” 

According to The Korea Moments, Lee claimed that the BOK is progressing with its central financial institution electronic forex. “The bank is shut to finishing our overview of types and relevant technologies concerning financial institution-managed electronic currencies,” he explained. As beforehand claimed, the bank issued a e book on lawful difficulties bordering CBDCs in early February.

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