Junhaeng Lee, the CEO and co-founder of Streami, a Seoul-based blockchain company that operates South Korea’s largest cryptocurrency exchange Gopax, believes that central bank-issued digital currencies (CBDC) and cryptocurrencies will coexist. He revealed this news during an interview on May 17. Explaining why he believes the two classes will coexist, Lee said that cryptocurrencies have traits that CBDCs cannot compete with.
In the interview, Lee said that cryptocurrencies, especially BTC, have use cases that vary from those of CBDCs. According to him, CBDC applications range from paying taxes to paying for products and services. On the other hand, BTC’s primary use case is to be a store of value, a trait that makes it compete with gold and treasury bills. As such, BTC cannot compete with currencies, be they Fiats or CBDC.
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To this end, Lee noted that BTC will exist in parallel to CBDCs, only that it would function as a store of value that can be guaranteed and applied to a smart contract-based blockchain application that can be accessed by a larger group of people in all the world.