CryptoNo Strategic Bitcoin Reserve in South Korea: Report

No Strategic Bitcoin Reserve in South Korea: Report

-



The United States government may be keen on owning and maintaining a digital asset stockpile, but not all countries feel the same way. South Korea, for one, has expressed its disinterest in including bitcoin (BTC), or any cryptocurrencies, in its foreign exchange reserves.

A report from the local media Korea Economic Daily revealed that the nation’s central bank, The Bank of Korea, is not considering establishing a strategic bitcoin reserve or even including the asset in its foreign exchange reserves.

No Bitcoin Reserve for South Korea

According to the report, the Bank of Korea unveiled its stance in response to a written inquiry from Representative Cha Gyu-Geun, a member of the Democratic Party of Korea and the National Assembly Planning and Finance Committee.

In the response dated March 16, the Bank of Korea said it has never considered including BTC in its foreign exchange reserves. The bank also mentioned the need to approach the idea of stockpiling BTC cautiously for several reasons.

For starters, the bank insisted that bitcoin’s high volatility would be a challenge. The asset’s price is constantly fluctuating. In the last several weeks, its value has fallen from a high of $109,000 to as low as $76,700. The asset was trading at $83,500 at press time, with a slight 24-hour decline, per data from CoinMarketCap.

The Bank of Korea said it could encounter high transaction costs due to market instability when selling its BTC and risks incurring losses during future bitcoin sales.

BTC Fails to Meet IMF Standards

Additionally, the South Korean central bank asserted that bitcoin does not meet the International Monetary Fund’s (IMF) standards for being included in foreign exchange reserves. The financial institution cited the standards, which state that reserves must be immediately available when needed, have a credit rating of at least qualified investment grade, have liquidity and marketability, and can be expressed in a convertible currency.

To the Bank of Korea, bitcoin does not meet these standards and so cannot be added to the institution’s foreign exchange reserves.

“It is known that some countries, such as the Czech Republic and Brazil, have expressed positive opinions, but the European Central Bank (ECB), the Swiss National Bank, and the Japanese government have expressed negative opinions,” the Bank of Korea added.

The bank’s response follows numerous requests for a strategic bitcoin reserve by South Korean financial experts and Democratic Party lawmakers. The call for a bitcoin reserve in the country comes as the U.S. president establishes a digital asset stockpile in the country.

SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Bitcoin Powerhouses: The 10 Exchanges Holding 3 Million BTC

On March 18, 2025, about 19.83 million bitcoins were circulating, and a substantial portion of these holdings now...

Four.Meme Suffers Another Security Breach, $130K Stolen in Latest Attack

The BNB Chain-based meme coin launch platform Four.Meme was attacked once again. PeckShield has reported a fresh attack that...

Michael Saylor will pay 18% dividends to buy bitcoin if he has to

Michael Saylor has invented yet another way to raise capital to buy BTC for Strategy: STRF preferreds with...

FTC removes posts critical of big tech from its website

The FTC has removed over 300 blog posts published during the agency’s leadership under former chair Lina Khan,...

Advertisement

Is the US DoD about to start mining bitcoin? Crypto X thinks so

A rumor about the US Department of Defense (DoD) mining bitcoin is earnings hundreds of thousands of social...

Must read

Bitcoin Powerhouses: The 10 Exchanges Holding 3 Million BTC

On March 18, 2025, about 19.83 million bitcoins...

Four.Meme Suffers Another Security Breach, $130K Stolen in Latest Attack

The BNB Chain-based meme coin launch platform Four.Meme...

You might also likeRELATED
Recommended to you