In the midst of a serious downward correction in the cryptocurrency market, the head of South Korea’s central bank is questioning digital currencies such as Bitcoin (BTC).
Bank of Korea Governor Lee Joo Yeol said cryptocurrencies such as bitcoin have no intrinsic value, local news agency Yonhap News reported on Tuesday. The official said he expects more price volatility in the market and said: “The price is very difficult to predict, but the price will be very volatile.”
Speaking to the National Assembly, Lee also raised the possible reasons for the recent rise in cryptocurrency, which has resulted in Bitcoin becoming a trillion dollars. The governor of the BOK cited a number of factors, including global concern about hyperinflation, growing institutional interest, and Tesla’s massive $ 1.5 billion purchase of bitcoins from Elon Musk.
“These assets have skyrocketed in a short time,” Lee said. “I would say that institutional investors’ assessment of the use of bitcoin as a hedge can be interpreted as another factor. ”
Lee said the Bank of Korea markets the central bank’s digital currency, according to the Korea Times. “The bank is close to completing our review of relevant digital currency designs and technologies controlled by the bank,” he said. As previously reported, the bank published a book on legal issues related to the central bank’s digital currencies in early February.
Bitcoin went through a sharp correction on February 22 when the price fell from over $ 58,000 to below $ 48,000. US Treasury Secretary Janet Yellen criticized bitcoin in an interview on Monday, saying that the world’s largest cryptocurrency is “a very inefficient way of conducting transactions. “