Amidst a major downward correction in the cryptocurrency market place, the head of South korea's central bank is skeptical about digital currencies like Bitcoin (BTC).

Bank of Korea Governor Lee Ju-yeol said that crypto assets like Bitcoin have no intrinsic value, local news agency Yonhap reports Tuesday. The official said that he expects more cost swings on the marketplace, stating, "It is very difficult to predict the price, but its price will be extremely volatile."

Speaking at the National Assembly, Lee too addressed possible reasons behind the recent abrupt crypto rally, which led Bitcoin to go a $1 trillion asset. The BOK governor cited a number of factors including global concerns over excessive inflation, growing institutional involvement, as well as a massive $1.5 billion Bitcoin purchase by Elon Musk'due south Tesla.

"These assets saw a steep rise in the shortest period of time," Lee stated. "I would say institutional investors' assessment of using bitcoins as a hedge could be interpreted as some other cistron."

According to The Korea Times, Lee claimed that the BOK is progressing with its central bank digital currency. "The bank is close to completing our review of designs and relevant technologies regarding bank-controlled digital currencies," he said. Every bit previously reported, the bank issued a book on legal problems surrounding CBDCs in early Feb.

Bitcoin saw a steep correction on Feb. 22, with its price plunging from to a higher place $58,000 to below $48,000. United States Treasury Secretary Janet Yellen criticized Bitcoin in an interview on Monday, stating that the world's largest cryptocurrency is "extremely inefficient way of conducting transactions."