Amid a major dip in the crypto market, Bank of Korea Governor, Lee Ju-yeol has expressed skepticism over the recent surge in price while explaining that the bank is working on a digital currency project.
In a report made by Yonhap, a local news agency earlier today, Lee Ju-you said that crypto assets have no intrinsic value and he expects more price fluctuations as “it is very difficult to predict the price, but its price will be extremely volatile” he stated.
While speaking at the National assembly, the Governor addressed possible reasons that could have led to the recent surge in the price of cryptocurrencies.
He cited several reasons that led bitcoin to become a $1 trillion asset, he gave an instance of massive concern of global investors leading to the excessive inflation, institutional interest, and Tesla’s $1.5billion investment.
He declared that what bitcoin experienced was a steep rise occasioned by institutional investor’s assessment which would lead to an
increase in market volatility.
This report came amidst a large setback experienced by most cryptocurrencies. Bitcoin experienced a major dip of more than $1,000 within the last 24 hours while Ethereum experienced a massive dip from $1,804 to $1,369 within the last 24hours.
However, the Binance coin (BNB) widely traded on the Binance platform rose to a peak of $344 but has experienced a major dip to $187 within the last 24hour.
Lee concluded by stating that the Bank of Korea is making progress with its central bank digital currency.
He said that the bank is close to completing a review of designs and important technologies to control the digital currency this development occurred after the bank had earlier issued a book on legal issues surrounding CBDCs in February.
While the new moves of the Bank of Korea are measures to legalize crypto exchange, the Central Bank of Nigeria had earlier this month, banned crypto exchange in the country.
This sparked outrage on social media and led to the Senate members of the National Assembly call for reconsideration by the Central bank.
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