The year 2020 has been full of news and rumors that no one expected. Starting the year with geopolitical conflicts in the Middle East, and reaching the fifth month in the midst of the worst pandemic experienced by humanity in a century. To which should also be added the rumors of the death of the North Korean ruler, Kim Jong Un, which generates growing uncertainty about the future of cryptocurrencies in the possession of the government of this country.
Rumors of Kim Jong Un’s death
Since 1948, the north of the Korean Peninsula has had a different system of government than the south. This half of Korea being governed by the Workers’ Party, a communist party led since 1948 by the Kim family.
What makes it one of the few countries today that maintains a communist system in the world, based on the “juche” ideology, a North Korean interpretation of classical Marxism-Leninism.
And since 2012, the Kim who is in charge of the destinations of the Democratic People’s Republic of Korea (official name of North Korea) is Kim Jong Un.
A ruler who has been characterized by his important activity at the international level. Especially because of the nuclear program that has positioned North Korea as one of the few nuclear powers in the world. And your government’s interest in cryptocurrencies.
At the same time, North Korea is one of the most closed countries in the world, having voluntarily isolated itself from the normal activities of the international system. With the harsh consequences that this has had on the quality of life of its inhabitants.
However, the stability of the North Korean government could now be threatened. Well, in recent days there have been strong rumors in the Japanese and American media about the possible death of Kim Jong Un. Due to complications after cardiac surgery. Something that could impact the cryptocurrency market.
The future of North Korean cryptocurrencies
And, North Korea has been characterized in recent years, for being a very active player in the crypto world. Taking advantage of the decentralization of virtual currencies such as Bitcoin, to avoid the financial sanctions that the western world has imposed on the country.
This has led to North Korea currently holding more than $ 670 million in cryptocurrencies. Those that have generally been obtained through illicit activities, and that represent an important part of the available funds of the nation.
Thus, rumors of the possible death of Kim Jong Un have led to commentators of the crypto world, to wonder what will be the future of cryptocurrencies in the hands of the North Korean government.
In particular, faced with the possibility that to finance a transition in power, the North Korean rulers sell the entire fund. What would strongly increase the supply of Bitcoins in the market, and therefore affect its price.
Of course, as long as the rumors about Kim Jong Un’s death are not confirmed, these are still speculations. Furthermore, even in the event that a transition of power in the communist country must be carried out. There is nothing to compel the North Korean government to sell its Bitcoins to maintain stability in the country. So, for now, the future of North Korean cryptocurrencies will remain a mystery.