Following the recent developments in China and the environmental concerns about bitcoin’s energy consumption, the Bank of Japan Governor Haruhiko Kuroda criticized the leading crypto asset bitcoin in an interview on Thursday.
BOJ’s Kuroda Says Bitcoin ‘Volatility Is Extraordinarily High’
Bitcoin prices have slumped again on Friday after a tumultuous week. After tapping a daily high on Thursday at $40,125 per unit, bitcoin (BTC) dropped to a low of $35,146 losing more than 12% in value. Since then, however, BTC has managed to regain some losses and climb back above the $36k handle.
According to Bloomberg, some of the recent sell-off during the early Friday morning hours (ET), may have been due to comments stemming from the Bank of Japan (BoJ) Governor Haruhiko Kuroda. The central bank’s lead criticized bitcoin and said that the crypto asset was not used much at all for settlement purposes. The criticism from Kuroda follows the recent statements from the Tokyo Metropolitan Assembly that said they wanted to transform the bustling city into a cryptocurrency “trading center.” BoJ Governor Kuroda’s cryptocurrency outlook is entirely different it seems.
“Most of the trading is speculative and volatility is extraordinarily high,” Kuroda said about bitcoin in an interview with Bloomberg on Thursday. “It’s barely used as a means of settlement,” the central bank Governor added.
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