Bank of Korea Governor Predicts Decline in Bitcoin Demand

Lee Joo-yeol believes that cryptocurrencies are limited in terms of their ability to function asmeans of payment.

Bank of Korea Governor Lee Joo Yeol expressed confidencethat the release of national digital currencies by world central banks (CBDC) will lead to a decrease in demand for bitcoin and other cryptocurrencies, according 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 will be introduced issued by the centralbank digital currency (CBDC), the demand for cryptocurrencies such as bitcoin, especially as a payment method, will decrease, "said the head of the South Korean regulator.

Bank of Korea plans to launch its owndigital 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 being skepticalstatements about cryptocurrencies. In late 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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