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Bank of Japan’s Governor Calls Bitcoin “Speculative”

Bank of Japan’s Governor Calls Bitcoin “Speculative”
  • Bank of Japan’s Governor Haruhiko Kuroda questioned Bitcoin’s usefulness.
  • As per the governor, Bitcoin is barely used as a means of payment but data says not.
  • Governor voiced his support for stablecoins.

In a recent interview with Bloomberg, Bank of Japan’s Governor Haruhiko Kuroda questioned Bitcoin’s usefulness as a medium of exchange. Furthermore, Kuroda is also doubtful whether Bitcoin a good investment option.

Kuroda explained,

Most of the trading is speculative and volatility is extraordinarily high

Moreover, as per the governor, Bitcoin is barely used as a means of payment. However, the on-chain data from YCharts speaks otherwise. YCharts revealed that Bitcoin had over 218,000 individual transactions on Friday, which is half of its peak in January 2021.

On another note, these numbers are far from Ethereum which is the world’s most-used blockchain. Of note, the Ethereum network has 1.3 million on-chain transactions on May 28.

Meanwhile, Kuroda is not the only bank official who disapproves of Bitcoin. It can be recalled, Federal Reserve Chair Jerome Powell said that digital assets were simply vehicles for speculation. In February, Bank of Korea’s Governor Lee Ju-Yeol stated that cryptocurrencies had no intrinsic value.

In relation to Bitcoin’s volatility, the price of the digital asset has been on a roller-coaster lately. Bitcoin managed to reclaim $40,000 on May 24 but has now fallen back to the $36,000 range as of writing. Bitcoin can be recalled to had a dip when China’s highest Financial Committee crackdown BTC mining and trading activities.

Bank of Japan’s Governor

Lastly, the Governor voiced his support for stablecoins, cryptocurrencies that have assets backing their value. Kuroda was quick to add that these assets comply with legal standards. Japan has maintained a favorable stance toward the public usage of crypto and relevant businesses like wallets and exchange services. Consequently, reports suggest that the country is already testing its digital yen in a sandbox environment.

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Britney is a market analyst who covers stories about the cryptocurrency world. She holds a Business Administration Degree in Finance and aims to let the readers understand crypto from a beginner perspective.