The head of the Bank of Korea, Lee Joo Yeol, expressed confidence that the release of national digital currencies by world central banks (CBDC) will lead to a decrease in demand for bitcoin and other cryptocurrencies, RBC Crypto reports with reference to Coindesk Korea. In his opinion, the first cryptocurrency and altcoins are limited in terms of their ability to function as a means of payment.
“When the central bank-issued digital currency (CBDC) is introduced, the demand for cryptocurrencies such as bitcoin, especially as a payment method, will decrease,” said the head of the South Korean regulator.
The Bank of Korea plans to launch its own digital currency in test mode in the second half of 2021. Before the release of the CBDC, it is necessary to check the technical requirements and conduct an in-depth analysis of the impact on the financial system, the head of the regulator noted.
Lee Joo Yeol is known for his skepticism about cryptocurrencies. At the end of February, he said that he considered the Bitcoin rally to be temporary. He also expressed confidence that cryptocurrencies will not be able to get away from high volatility, since they have no intrinsic value. This is what, according to Lee Joo Yele, will prevent bitcoin from becoming a full-fledged payment instrument.
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