Bank of Korea Governor Lee Joo Yeol said that in the future, the digital asset market may develop to the scale of the stock market due to the growing interest of investors in cryptocurrencies.
According to local media reports, Lee Ju-yeol announced the need to improve economic conditions and adjust monetary policy. According to him, this may require an increase in interest rates.
The announcement came after information emerged that the US Federal Reserve (FRS) may raise interest rates to fight inflation. Many consider Bitcoin to be a hedging asset that will “save” their savings, and supporters of the first cryptocurrency are confident that it can become a full-fledged replacement for gold. Joo Yeol admitted that cryptocurrencies have indeed become popular investment vehicles:
“I cannot yet say that digital assets are better than gold, but if global cash flow continues to move towards NFTs and cryptocurrencies, it is likely that this industry will grow to the scale of the stock market,” he said.
The head of the NH All100 consulting center Kim Hee-Jeong noted that cryptocurrencies are not included in the investment portfolios of clients due to high volatility, and local banks are afraid to work with them due to the tough position of the government. However, the number of clients looking to invest in crypto assets has increased significantly. According to Hee Jong, now not only people aged 20-30 are interested in investing in virtual assets, but also the elderly.
Jae-sun Lee, a researcher at investment firm Hana Financial Investment, believes that due to the growing interest of organizations and large companies in the cryptocurrency market, over the past year, this industry has turned into a full-fledged structure for institutions. And Mirae Asset Securities Chairman Choi Hyun-man said the emergence of cryptocurrencies, blockchain, the metaverse and NFT has created new markets in which new businesses can operate.
At the same time, the South Korean government is tightening the rules for cryptocurrencies. As of this year, citizens of the country must pay tax on donated and inherited cryptocurrencies, and in November, the Financial Services Commission (FSC) of South Korea proposed taxing income from trading collectible tokens.
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