After recent developments in China and environmental concerns about bitcoin’s energy use, Bank of Japan Governor Haruhiko Kuroda criticized leading bitcoin in digital assets in an interview on Thursday.
BOJ’s Kuroda Says Bitcoin ‘Extremely Volatile’
Bitcoin price fell again on Friday after a busy week. After hitting a daily high on Thursday of $40,125 per unit, bitcoin (BTC) dropped to a low of $35,146, losing more than 12% in value. Since then, however, BTC has been able to recover some of its losses and climb. back above $36k level
According to Bloomberg, some of the latest selloff on Friday morning (ET) may have been caused by comments from Bank of Japan (BoJ) Governor Haruhiko Kuroda, the head of the central bank, criticizing bitcoin and saying the crypto asset is “incredible.” It is not used much for liquidation purposes. The criticism from Kuroda follows a recent statement from the Tokyo Metropolitan Assembly that said they wanted to turn the bustling city into a “smart city”. Governor BoJ Kuroda’s cryptocurrency outlook is completely different.
“Most trading is speculative and volatility is particularly high,” Kuroda said about bitcoin in an interview with Bloomberg on Thursday. “It is rarely used as a means of settlement,” the central bank governor added.
Kuroda talks about climate change and solving inflation.fl
Kuroda may speak out against bitcoin because of the climate change talks he participated in this week. Central banks around the world are not just criticizing bitcoin, as many banking leaders are also addressing climate change concerns these days. BoJ’s Kuroda said on Thursday that central banks have “Great interest” in tackling these climate concerns.
“Naturally, how we respond to this at the monetary policy level will become a topic of discussion,” Kuroda stressed on Thursday. Just like the Jerome question. Powell has been about inflation. Kuroda was also asked about inflation this week. “The policy stance is based on acknowledging that it will take time to beat low inflation once it is seized,” Kuroda said, the central bank governor added:
That is a lesson learned from Japan’s long-standing deflation experience.
Kuroda’s statement on bitcoin follows what the country’s gaming giant Nexon bought for 1,717 BTC on April 28. Unlike the recent BoJ governor Nexon said: “bitcoin offers long-term stability and liquidity while preserving the value of our cash for future investments.” On the other hand, Japanese regulators have followed South Korea’s lead in preparing the Financial Action Task Force (FATF) guidelines. towards digital assets
Discussing inflation fears with the media on Thursday, the BoJ governor stressed that the stimulus measures would continue, Kuroda followed the same line of stability as the 2% inflation referenced by other central banks, noting that the stimulus measures “will not be the same.” The BoJ’s economy must be relentless.
“Each central bank has to adjust its monetary policy to its own economic, price and financial situation,” Kuroda concluded. “Our inflation rate is still relatively low. Therefore, we must continue to implement monetary easing measures to achieve our 2% price stability target.”
What do you think about BoJ’s governor Haruhiko Kuroda and his views on bitcoin? Let us know what you think about it in the comments section below.
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