As the meteoric rise of Bitcoin towards $20,000 before the end of the year seems unable to stop, several governments are coming to terms with their youngster having invested in the cryptocurrency.
South Korea, where some 2% of the population, mostly youngsters, have invested, has decided by emergency decree it will ban minors and foreigners from trading in virtual currency or creating bank accounts for them in the country.
Furthermore, the government of South Korean President Moon said it will also tax profits from income from virtual currency and impose stricter authentication for traders, even though no amount or percentage to that tax has yet been set.
A bit further south, in Australia, the young working population has also gotten into investing in cryptocurrencies seeing the success of their Asian counterparts.
When asked during a financial congress in Sydney this morning whether he believes in these new currencies, the Reserve Bank of Australia Governor, Mr Philip Lowe stated there is a "speculative mania" surrounding cryptocurrencies, and at the same time he played down the chances of the Australian central bank issuing a digital Australian dollar.
"When thought of purely as a payment instrument, it seems more likely to be attractive to those who want to make transactions in the black or illegal economy, rather than everyday transactions."
"So the current fascination with these currencies feels more like a speculative mania than it has to do with their use as an efficient and convenient form of electronic payment.”
Mr Lowe also stated that the currency can’t currently be used to make small payments due to the severe fluctuation in price: "If people in this audience want to use bitcoin to make payments they are perfectly free to do that. I'd suggest the cost of doing that is extraordinary, and do you really want to hold the value that you're using to make payments with in something where the price fluctuates 20 per cent in a day?"
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