17.03.2025 13:11
In South Korea, one of the countries with the highest cryptocurrency adoption, discussions about Bitcoin reserves are ongoing. The Bank of Korea announced that it has not yet considered including Bitcoin in its foreign exchange reserves due to its high volatility.
The Bank of Korea announced that it has taken a cautious stance on including Bitcoin in its foreign exchange reserves. Bank officials stated that they have not yet evaluated the potential of a Bitcoin reserve due to the cryptocurrency's high price volatility.
South Korea Announces Its Stance on Bitcoin Reserves
The Bank of Korea stated that, despite calls from some lawmakers and cryptocurrency lobbyists, it has not yet considered Bitcoin as a possible foreign exchange reserve. Bank officials announced that they have adopted a "cautious approach".
In response to a written question from Representative Cha Gyu-geun, a member of the National Assembly Planning and Finance Committee, the central bank indicated that it has "neither discussed nor examined" the inclusion of cryptocurrency in foreign exchange reserves. According to sources familiar with the matter, officials emphasized that "it is necessary to act cautiously" regarding this issue.
In its statement, the central bank noted that Bitcoin has very high price volatility and warned that "if instability occurs in the cryptocurrency market, the costs of converting Bitcoin to cash could significantly increase".
Bitcoin prices have experienced sharp fluctuations between $98,000 and $76,000 in the past month. The cryptocurrency has lost 15% of its value since February 16, dropping to around $83,000.
This decision comes at a time when global discussions about the role of crypto assets in national financial strategies are intensifying, influenced by a decree signed by U.S. President Donald Trump this month, which foresees the establishment of a strategic Bitcoin reserve and digital asset stock.