Korea Bank (Book) He has rejected The possibility of creating a strategic bitcoin reserve, noting concerns about price volatility and risk. This comes despite the ongoing global discussions about Bitcoin’s use as part of foreign currency reserves after the United States plans to create a reserve.
In response to an investigation by a member of the Strategy and Financial Committee in the National Assembly, the Central Bank refused to add bitcoin to its reserves. BOK officials emphasized Bitcoin’s land fluctuations as a major deterrent, saying that the costs of transactions to convert bitcoin into money “can rise significantly” if the market suffers from instability.
As of March 17, Bitcoin is trading about $ 83,500, after it decreased by 23 % of its peak of $ 108,000 in January. BOK warned that this extreme volatility poses a great risk of its reserves.
The bank also indicated that Bitcoin failed to meet the standards of the International Monetary Fund (IMF) for reserve assets. The International Monetary Fund calls for wise management of liquidity, market and credit risks of reserves – standards that currently do not satisfy Bitcoin in Bok’s eyes.
This last position represents the first time that the South Korean Central Bank directly deals with the possibility of using bitcoin as a backup asset. He emphasized a “cautious approach” regarding bitcoin.
Bitcoin strategic reserves come despite the increasing interest in the potential Crypto role in the world levels. Earlier in March, US President Donald Trump signed an executive order to create a strategic bitcoin reserve. These discussions that feed in South Korea and other Asian countries about follow -up.
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