Governor of the Bank of Korea: "Digital currencies of the Central Bank will reduce the demand for bitcoin" – Bits Media

Manager of the Central Bank of South Korea Lee Ju Yol (Lee Ju-yeol) considers, that after starting digital currencies of central banks, Bitcoin and other cryptocurrencies will cease to be in demand.

Yol explained, that the high volatility of bitcoin prevents him from becoming reliable tool for maintaining wealth and an effective payment tool. According to him, Bitcoin has no internal value, And this is the main obstacle to its widespread implementation. Therefore, when the central banks present their own stablecoins, pollut, The demand for bitcoin will drop sharply, He believes.

Many central banks have already begun to study the possibility of starting digital currencies, These include the Bank of Russia. People's Bank of China (NSC) Already repeatedly tested digital yuan in different cities, And at the beginning of the year, photos of a hardware wallet for a digital yuan appeared on the network. Yamaiki Bank also expressed his readiness to make a transition to digital currency.

Given the interest of the Central Bank in digital currencies, Yol reported, that at the end of the year, Korea Bank also plans to start testing its own stablecoin for payments and bank transfers. Earlier, analysts of the Central Bank of South Korea came to the conclusion, that state cryptocurrencies are similar to fiat currencies and meet the requirements for legal payment funds, Unlike private cryptocurrencies.

However, the manager of the Bank of Korea said, that before starting digital currency, It is necessary to conduct its thorough verification for compliance with the technological requirements, and also study the consequences of launching such currency and its possible influence on the country's financial system.

The recently manager of the Bank of Korea said, that when it comes to digital currencies of central banks, it is better to follow the “US way” - not rush to launch. However, now he begins to change his opinion on this issue, Like the chairman of the US Federal Reserve (FRS) Jerome Powell (Jerome Powell). This month, Powell said, that in innovative and flexible payment systems, state digital currencies should function along with ordinary money.