Haruhiko Kuroda, Bank of Japan governor, questions the usefulness of Bitcoin as an investment option. He moreover said that the leading coin could not serve as real money.
In an interview, the bank official expressed his worries about Bitcoin’s extreme volatility, stating that most BTC businesses are speculative. He declared that few individuals use Bitcoin for payment. However, what does the data say?
YCharts on-chain info indicates that the world’s favorite digital asset had transactions amounting to 218,000 on Friday. That is about half of the 398,000 at the start of 2021. However, the figures are far less when compared to Ethereum’s performance. Keep in mind that ETH is the most-used blockchain at the moment. For instance, on May 28, the Ethereum system settled on-chain transactions exceeding 1.3 million.
The governor is the first bank official to decry Bitcoin. However, his peers have similar remarks. For example, in April, Jerome Powell, Federal Reserve chair, declared that cryptocurrency is a speculation vehicle. Also, Lee Ju-yeol, a Bank of Korea official, said that digital coins do not have intrinsic value back in February.
Bitcoin PEERS previously reported that Andrew Bailey of the Bank of England doomed Bitcoin on various occasions. Bailey has shown his concerns about BTC lacking intrinsic values, advising investors to consider bitcoin if they want to lose their funds.
Nevertheless, you may have to accept that Bitcoin has had wild fluctuations recently. After dropping under $50k weeks ago, Bitcoin recovered to $40k since last week. However, when writing this, Bitcoin hovers at about $33k.
Bitcoin dropped after China announced restricting crypto trading and mining dealings. Also, Elon Musk initiated earlier BTC fluctuations after suspending its use in his company’s activities.
Despite disapproving Bitcoin, governor Kuroda said he supports stablecoins, digital coins backed up by assets. He declared that these coins could act as a convenient transaction method in the future. That is if stablecoins will adhere to lawful procedures.
Generally, Japan has been friendly when it comes to cryptocurrency usage and activities. On the other news, sources report that the nation is preparing its digital yen.