President of Central Bank of Peru criticized crypto

Julio Velarde first mentioned the volatility of digital assets, stating that one of the reasons is the lack of their intrinsic value

21.02.2022 - 11:55

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What’s new? Julio Velarde, the president of the Central Bank of Peru, has criticized the value of cryptocurrencies and referred to the negative impact they have on the environment. In a recent interview with the local media, the Central Bank head said that the bank does not consider bitcoin as a payment method. Instead, Velarde called it a highly volatile financial asset that is bought because of a strong change in the exchange rate.

Information on the Caretas website

What does the Central Bank’s president say? Velarde first mentioned the volatility of cryptocurrencies, stating that one of the reasons for this is the lack of intrinsic value of the assets. He explained that investors may lose interest in owning coins and then their price can drop “to anything.” Velarde also explained that there are environmental problems associated with the use of cryptocurrencies, serious energy consumption. He added:

“The problem with cryptocurrency now is climate change. It is the least friendly for the environment. Continuing to mine bitcoins consumes the energy of a medium-sized country. These are impressive amounts.”

What does the Central Bank’s head think about CBDC? He stated that the bank is working on a document to be presented in a month and a half, following a meeting with the Central Bank of India and the International Monetary Fund. The Central Bank president clarified that CBDC will be supported by central banks as opposed to cryptocurrencies.

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