Korea Bank Governor Wary of Bitcoin Despite still Working on a Digital Currency Project

By: Mark Jessy

February 24, 2021 1:40 AM

Bank of Korea Chief Lee Ju-yoel expressed his concerns over the recent market rally.

The crypto market is currently experiencing a major correction, which has caused the Governor of South Korea central bank to be wary about digital assets such as Bitcoin.

Lee said that digital currencies such as Bitcoin (BTC) have no intrinsic value. at the National Assembly, Lee also talked about the reason behind the recent sharp crypto market rally, which made bitcoin hit a new all time high of $58,000. He said that Tesla $1.5 billion dollar Bitcoin purchase and excessive inflation which has increased institutional interest in Bitcoin.

Yonhap a local news agency reported on Tuesday, the chief said that he expects more price swings on the market, he started: "is very difficult to predict the price, but bitcoin price will be incredibly volatile."

Lee added:
“I would say institutional investors’ assessment of using bitcoins as a hedge could be interpreted as another factor.” 

In a report by the Korea Times, Lee claimed that the Bank of Korea is continuing with its central bank digital currency. 

“The bank is close to completing our review of designs and relevant technologies regarding bank-controlled digital currencies."