TL;DR Breakdown
- Bitcoin can exist alongside CBDCs.
- Bitcoin suffered a crash after Tesla stopped BTC payments.
The co-founder and Streami CEO affirmed that CBDCs will coexist with other cryptocurrencies. Junhaeng Lee, is the co-founder of this blockchain company based in Seoul, South Korea which is in charge of carrying out the largest cryptocurrency exchange in this Asian country.
Gopax, a recognized exchange platform, also claims that central bank-issued digital currencies (CBDC) and cryptocurrencies will coexist. This information was revealed in a news item today where they explained the reasons they believed both will coexist.
CBDCs differ from cryptocurrencies
Junhaeng Lee has commented that cryptocurrencies have characteristics that CBDCs will not compete with. In the interview, he also commented that cryptocurrencies such as Bitcoin have uses that can vary from the Central Bank’s digital currencies.
Lee comments that payments from the central bank digital currency range from tax payments to payments for products and services. The main use of Bitcoin is to be a store of value that makes it compete with treasury bills and gold. Bitcoin (BTC) cannot compete with central bank-issued digital currencies or Fiat currencies.
For the co-founder of Streami, Bitcoin can exist in parallel with CBDCs. It will function as a store of value that can be used and guaranteed to a blockchain application based on smart contracts to access more people around the world.
Changes in the Bitcoin price will not affect its fundamentals
Lee also spoke about the BTC volatility and he stated that the constant change in the value of this cryptocurrency would not affect its fundamentals. He also added that Bitcoin has strong principles.
Changpeng Zhao is the Binance CEO, one of the most popular cryptocurrency exchange companies by the number of operations. Zhao spoke before LEE and said that CBDCs and different cryptocurrencies would coexist for a short period.
According to Zhao, central bank digital currencies differ from traditional cryptocurrencies for many reasons. One aspect that differentiates them is that CBDCs do not offer the freedom that conventional cryptocurrencies have. But they do not have a limit with the finite supply.
For Zhao, these aspects can discourage cryptocurrency investors who entered this market for those same reasons. He also commented that the CBDCs would get more adjunct control. These would be the main properties that users are concerned about.
Most of the crypto market and Bitcoin suffered a crash after Elon Musk indicated that Tesla was no longer accepting BTC payments until miners could find a sustainable energy source. Following this announcement, BTC/USD suffered a loss in the last seven days of about 25.49% of its value, reaching $42,703.32.
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