The Bank of Korea has firmly clarified its position regarding Bitcoin, stating it “has never considered including Bitcoin in its foreign exchange reserves.” This statement was issued following an inquiry from South Korean Congressman Che Kye-geun, emphasizing the central bank’s cautious approach towards the inclusion of such a highly volatile asset in its reserve strategy. On March 16th, the bank elaborated that any potential inclusion of Bitcoin necessitates thorough deliberation, primarily due to the cryptocurrency’s unpredictable pricing.
The Bank of Korea expressed concerns regarding transaction costs, noting that if the cryptocurrency market were to experience instability, the costs associated with liquidating Bitcoin could escalate significantly. Furthermore, they pointed out that Bitcoin does not align with the IMF‘s standards for foreign exchange reserves. Despite some countries, like the Czech Republic and Brazil, showing a favorable outlook towards cryptocurrency reserves, notable institutions such as the European Central Bank and the Japanese government remain opposed to this practice.