If central banks launch CBDCs, then Bitcoin will lose popularity among investors. This is the opinion of the leadership of the Bank of Korea.
The head of the regulator Li Zhu-Yeol stressed that BTC will gradually become history, as the decentralized cryptocurrency will simply cease to be used. After a while, we will see how interest in Bitcoin will begin to wane, and this trend will no longer be stopped.
The head of the South Korean Central Bank noted: "When a digital currency issued by a central bank appears, the demand for bitcoin and other cryptos as a payment instrument will decrease."
Trending: Finder: Bitcoin could hit $80,000 by 2025
Due to the high volatility, Bitcoin cannot be regarded as a safe haven asset, the official said.
Note that South Korea has already begun preparations for the launch of the CBDC. Back in early February, it became known that the country's Central Bank began to develop a regulatory framework for transactions with a regulated token.