Lee Ju-yeol, Governor of Bank of Korea, says Bitcoin is neither an asset nor has any potential value intrinsically, therefore, doesn’t qualify the test of being an actual “asset”.
South Korean National Assembly concluded its last session on 23rd February, 2021, wherein Lee Ju-yeol, Governor, Bank of Korea was also invited.
During Assembly Sessions, the Governor was also asked to share his thoughts over the growing interest of South Koreans investing in crypto.
A member of the National Assembly raised a question about Bitcoin and asked Ju-yeol to respond. The member wanted to know whether Bitcoin’s rally is for the long term or for the short term or is more like a “bubble”.
The Governor asserted that there isn’t any potential value within Bitcoin intrinsically. He gave an example to state that in the financial system if an asset lacks intrinsic value, then it couldn’t be classified as an “asset”. In his opinion, Bitcoin inherently lacks intrinsic value and therefore there is this issue of volatility.
In response, Lee predicted that Bitcoin’s value will continue to surge in the future as well. However, nobody can actually guess the exact price of Bitcoin after 3 to 6 months, he stated. But he mentioned that Bitcoin’s value would be enormously volatile and reiterated that to him Bitcoin isn’t an “asset” per se.
He further pointed out that the reasons for Bitcoin’s rally are manifold. First of all huge interest has been developed into Bitcoin from the corporate sector. Secondly, the talks about expected inflation too are assisting Bitcoin to acquire enormous values. Thirdly, the fact that global economies individual printed extra currencies to support economies, this too opened up gates for the crypto industry.
Ju-yeol stated further that:
Crypto assets witnessed immense growth within the shortest time ever. In his opinion, the credit crypto industry owed to the investors from the institutional sector. These investors came to believe in Bitcoin as an alternate hedge for ensuring a better future financially. However, the hedge would likely to be interrupted in the coming future, he suggested.
It was also apprised by Ju-yeol that South Korean Central Bank at the end of concluding its review regarding technology and designs. Both, the technology and designs, are relating to those crypto that are controlled and supervised by the Bank of Korea.
Before Ju-yeol, there were others top officials of worldwide central banks who too had shared the same point of view. However, the fact is that there hasn’t been any reduction in the Bitcoin investment craze, which continues to spread like a wildfire.
Within this month alone, Bitcoin has already broke two of its All-Time High records and went above US$ 58,000 as well. Yet discouraging remarks seem to work in the opposite direction for Bitcoin. Lately it was JanaetYellen, States Secretary for Treasury, along with Bill Gates, who had criticized Bitcoin lately.