Following recent developments in China and environmental concerns about bitcoin’s energy consumption, Bank of Japan Governor Haruhiko Kuroda criticized the leading crypto asset bitcoin in an interview on Thursday.
Kuroda of BoJ says bitcoin ‘volatility is exceptionally high’
Bitcoin prices again plummeted on Friday after a turbulent week. After tapping the daily high of $ 40,125 per unit on Thursday, Bitcoin (btc) The price fell more than 12% to a low of $ 35,146. Since then, however, B T c Have managed to regain some damage and climb up $ 36k handle.
According to Bloomberg, some of the recent sell-offs during the early hours of Friday morning (ET) may be the reason notes Bank of Japan (BoJ) Governor Haruhiko stems from Kuroda. Criticism of central bank leadership Bitcoin And stated that crypto assets were not used much for settlement purposes. Criticism of Kuroda is as follows Recent statements He told the Tokyo Metropolitan Assembly that he wanted to turn the bustling city into a cryptocurrency “trading center”. It seems that the cryptocurrency approach of BoJ Governor Kuroda is completely different.
“Most of the trade is speculative and volatility is exceptionally high,” Kuroda said of Bitcoin in an interview with Bloomberg on Thursday. The central bank governor said, “It is hardly used as a means of settlement.”
Kuroda speaks on climate change and addresses inflation concerns
Kuroda may be speaking out against bitcoin as he is participating this week due to a discussion on climate change. Central bankers around the world are not only critical of bitcoin, as many banking leaders are also addressing climate change concerns these days. BoJ’s Kuroda said On Thursday, the central bank has “great interest” in dealing with these climate concerns.
“Naturally, how we respond to this at the level of monetary policy will become a matter of discussion,” Kuroda Stressed on on Thursday. Just as Jerome Powell has been questioned about inflation, similarly Kuroda was also asked about inflation this week. “This policy stance is based on the assumption that it will take time to overcome low inflation,” Kuroda said. The governor of the central bank added:
This is the lesson learned from Japan’s long-term experience of deflation.
Kuroda’s statements about bitcoin also follow the purchase of 1,717 by the country’s gaming giant Nexon. B T c On 28 April. Contrary to BoJ governor’s statements, Nexon recently said: “Bitcoin provides long-term stability and liquidity while maintaining the value of our cash for future investments.” On the other hand, Japanese regulators have been written below South Korea’s leadership in preparing the Financial Action Task Force (FATF) guidelines for crypto-assets.
Discussing inflation fears with the press on Thursday, the BoJ governor insisted that the stimulus would continue. Kuroda follows the same stability line 2% inflation, As many other central banks have referenced, and noted that BoJ’s incentives should remain consistent.
“Each central bank has to adapt its monetary policy to its economic, price and financial conditions,” Kuroda concluded. “Our inflation rate is still quite low and therefore we have to be consistent in operating our monetary easing to achieve our 2% price stability target.”
What do you think of BoJ Governor Haruhiko Kuroda and his comments about bitcoin? Tell us what you think about this topic in the comments section below.
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