The introduction of national digital currencies will reduce demand for current digital currencies such as bitcoin, said Lee Ju-Yeol, the governor of South Korea’s central bank.
to the Report “The decline in demand for current digital currencies is a result of the supply of national digital currencies,” said CoinDesk, Korea’s co-founder, Joe Yool, on Wednesday.
With the introduction of digital currencies by central banks, the demand for bitcoin and other digital currencies as payment methods is declining.
He added that bitcoin and other digital currencies fluctuate widely, and that this can affect and limit their function as a means of paying or storing value.
South Korea’s central bank has previously announced that it will launch its national digital currency on a trial basis by the end of this year. China, Turkey, Russia and Jamaica are among the other countries working to launch a national digital currency.
During the pilot program, South Korean banks will use the country’s national digital currency to transfer capital, payments, foreign exchange, currency distribution, and repayments.
South Korea’s central bank last month launched a study on national digital currencies. The report compared national digital currencies with Fiat currencies, which can be used as common currencies like Fiat currencies. The bank also stated that private digital currencies do not have such a capability.
In another part of his speech, Joe Yool said:
Before national digital currencies enter the cycle, a review of technology requirements and an in-depth review of the impact of these currencies on the financial system is required. [کشور] Will happen.
Last week, Federal Reserve Chairman Jerome Powell made similar remarks, citing a report by the International Settlement Bank. Speaking at the Basel conference on virtual payments, he said:
In a flexible and innovative payment system, national digital currencies must coexist with cash and other forms of money.
Last month, Joe Yool told the North Korean parliament that digital currencies like Bitcoin “have no intrinsic value.” He also said that when it comes to national digital currencies, it is better to follow the United States and do the right thing instead of getting it done quickly.