Amid a major downward correction in the cryptocurrency market, South Korea’s central bank official is skeptical of digital currencies like Bitcoin (BTC).
Bank of Korea Governor Lee Ju-yeol has said crypto assets like Bitcoin have no intrinsic value, local TBEN reported on Tuesday. The official said he expects more price fluctuations in the market, saying: “It is very difficult to predict the price, but its price will be extremely volatile.”
Speaking in the National Assembly, Lee also touched on the possible reasons for the recent brutal crypto rally, which led to Bitcoin becoming a $ 1 trillion asset. The BOK governor cited a number of factors, including global concerns over excessive inflation, growing institutional interest, as well as a massive $ 1.5 billion Bitcoin purchase by Tesla from Elon Musk.
“These assets saw a big increase in the shortest possible time,” Lee said. “I would say that institutional investors’ assessment of using bitcoin as a hedge could be interpreted as another factor.”
According to The Korea Times, Lee claimed the BOK is making progress with its central bank digital currency. “The bank is close to completing our review of relevant designs and technologies regarding digital currencies controlled by the bank,” he said. As previously reported, the bank published a book on the legal issues surrounding CBDCs in early February.
Bitcoin saw a sharp correction on February 22, with its price dropping from over $ 58,000 to under $ 48,000. United States Treasury Secretary Janet Yellen criticized Bitcoin in an interview on Monday, saying the world’s largest cryptocurrency was “an extremely inefficient way to transact.”