Bank of Korea (BOK) Governor Lee Ju-yeol thinks that incoming central bank digital currencies (CBDCs) could reduce demand for cryptocurrencies like Bitcoin.
At an event this week, Lee, a noted Bitcoin skeptic, said BTC and other cryptos are limited in terms of their ability to function as means of payment and/or stores of value, CoinDesk Korea reports.
“When the central bank-issued digital currency is introduced, the demand for Bitcoin and other cryptocurrencies as means of payment will decrease.”
The Bank of Korea, which issues the South Korean won, has been exploring the feasibility of CBDCs for nearly a year. According to the Korea Times, the central bank plans to pilot its own CBDC system by the end of 2021.
Several countries, including Sweden, Switzerland, the US and Japan, have stepped up efforts to explore CBDCs. China is currently testing a digital version of the yuan.
Lee said at a press conference last month that he agrees with the US’s approach to CBDCs in terms of prioritizing quality development over speed, according to the South Korean economic newspaper Money Today.
The BOK governor has also recently said that in his opinion, Bitcoin has no intrinsic value.
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