In the midst of one major downward correction in the cryptocurrency marketthe top of South Korea's central financial institution is skeptical of digital currencies comparable to Bitcoin (BTC
Financial institution of Korea Governor Lee Ju-yeol mentioned crypto belongings like Bitcoin don’t have any intrinsic worth, native Yonhap information company reports Tuesday. The official mentioned he expects extra value swings out there, stating, "It is vitally troublesome to foretell the value, however the value shall be extraordinarily risky."
On the Nationwide Meeting, Lee additionally spoke about potential causes behind the latest sharp crypto rally that led Bitcoin will become a $ 1 trillion assetThe BOK governor cited quite a lot of components, together with world issues about extreme inflation, rising institutional curiosity and an enormous Tesla's $ 1.5 Billion Bitcoin Purchase from Elon Musk
"These belongings have seen a surge within the shortest time," mentioned Lee. "I might argue that institutional traders' evaluation of utilizing bitcoins as a hedge might be interpreted as one other issue."
Based on The Korea Occasions, Lee claimed that the BOK is making headway with its central financial institution digital forex. “The financial institution is nearing completion of our overview of designs and related applied sciences associated to bank-controlled digital currencies,” he mentioned. As beforehand reported, the financial institution has has published a book on legal issues surrounding CBDC & # 39; s starting of February.
Bitcoin noticed a pointy correction with its value on February 22 plunges from above $ 58,000 to below $ 48,000United States Secretary of the Treasury Janet Yellen criticized Bitcoin in an interview on Monday, stating that the world's largest cryptocurrency & # 39; is an especially inefficient method to execute transactions & # 39 ;.