Following a controversial statement by the Tokyo Metropolitan Assembly, stating that they intend to transform the city to a cryptocurrency trading center, the Governor of the Bank of Japan (BoJ) has criticised Bitcoin. Haruhiko Kuroda, the Bank Governor, had said that Bitcoins are not often used for settlement purposes. He also complained about the high volatility of cryptocurrencies.
The recent developments in the cryptocurrency market has touched down heavily on several cryptocurrencies, most especially Bitcoin. BTC, after groping about a faltering market, had clamped $40,000 per piece on Thursday but dropped down again early on Friday to a $35,000 support. The value at the time of this report trades at about $36,000.
Governments globally are on the verge of sailing an economy disturbed with inflation. Koroda was quizzed in an interview on Thursday about the fear of inflation. The BoJ Governor mentioned that the country still has a low inflation rate and that they’d employ measures to keep up with the two percent price stability target.
Central Banks Addresses Bitcoin Amidst Concerns about Climate Change
Concerns about the climate have also taken its toll recently. Several central banks across the globe have also gotten ahead to discuss the issue. The bankers might not entirely be criticising Bitcoin but are also seeking ways to manage climate change.
Kuroda had disclosed the position the Japanese Central Bank holds concerning climate change. He said that the Bank has great interests concerning such matters. The boss also acknowledged that he is aware of how the BoJ response to this “at the level of monetary policy will become a topic of discussion.”
Despite the antagonistic outlook of the Central Bank to Bitcoin, the biggest gaming company in the country, Nexon, has chosen BTC as a stable cushion for its funds. Nexon purchased about 1,717 Bitcoins on April 28 as a form of secure investment. Financial regulators in Japan are also finalising plans to launch Financial Action Task Force (FATF) guidelines to monitor transactions that involve cryptocurrencies.