South Korea's Central Bank Dismisses Bitcoin as Foreign Exchange Reserve

According to PANews, the Bank of Korea has clarified that it has never considered including Bitcoin in its foreign exchange reserves. This statement was made in response to a written inquiry from Cha Kyu-geun, a member of the National Assembly's Planning and Finance Committee, on March 16. This marks the first time the Bank of Korea has publicly addressed its stance on Bitcoin reserves. The central bank cited Bitcoin's high price volatility as a primary reason for its negative stance. It noted that if the virtual asset market becomes unstable, Bitcoin could face significant transaction cost increases during liquidation. Furthermore, the Bank of Korea stated that Bitcoin does not meet the International Monetary Fund's (IMF) standards for foreign exchange reserves. Based on these considerations, the Bank of Korea confirmed that it has never discussed or contemplated the inclusion of Bitcoin in its foreign exchange reserves. The bank also mentioned that while countries like the Czech Republic and Brazil have shown a positive attitude towards this idea, institutions such as the European Central Bank, the Swiss National Bank, and the Japanese government have expressed opposition.