Bank of Korea Governor Lee Ju-yeol has expressed skepticism about cryptocurrencies. In his opinion, they have no value. He also stated that his bank was developing its digital currency project. The case was reported by the local news agency Yonhap.
Lee Ju-yeol: Cryptocurrencies have no value
Lee Ju-yeol, head of South Korea’s central bank, is skeptical of digital currencies such as Bitcoin (BTC). He saidthat assets such as Bitcoin have no intrinsic value. The official also added that he now expects greater price volatility in the digital asset market, stating that “The price is very difficult to predict, but the price will be very volatile.”
Speaking to the National Assembly, he also referred to the possible causes of the recent spike in cryptocurrency prices, which has led to Bitcoin becoming an asset totaling as much as $ 1 trillion. The governor of the central bank cited a number of factors that could have led to this. For example, he pointed out global consumer concerns about future potential high inflation, growing interest from institutions in cryptocurrencies, as well as Tesla’s massive $ 1.5 billion purchase of Bitcoins.
– These assets consequently grew sharply in the shortest possible time – said Lee. – I would say that institutional investors’ assessment of using Bitcoin as collateral can be interpreted as another [prowzrostowy] factor – added.
CBDC of South Korea
According to The Korea Times, Lee also stated that his bank is already developing its digital currency project.
– The bank is close to completing a review of projects and related technologies for bank-controlled digital currencies – He said. In turn, in early February, his bank published a book devoted to legal issues related to CBDC.
The words of the Korean politician correspond with the statement of the US Treasury Secretary Janet Yellen, who criticized Bitcoin in a Monday interview. She stated that the cryptocurrency is “An extremely ineffective way to conduct transactions.”
On this occasion, it is worth recalling that currently the Bitcoin market is seeing a very sharp price correction. The main cryptocurrency fell from over $ 58,000 to around $ 47,500.