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The Bank of Korea (BOK) has officially stated that it has not considered incorporating Bitcoin into its foreign exchange reserves. Responding to an inquiry from Representative Cha Gyu-geun of the National Assembly’s Planning and Finance Committee, the BOK emphasized a cautious approach due to Bitcoin’s high price volatility and its failure to meet the International Monetary Fund’s (IMF) criteria for reserve assets.
The central bank highlighted that foreign exchange reserves must possess high liquidity and be readily usable when needed, characteristics that Bitcoin currently lacks. Additionally, the BOK expressed concerns that instability in the cryptocurrency market could lead to increased transaction costs when converting Bitcoin into cash, further questioning its suitability as a reserve asset.
This stance aligns with the BOK’s commitment to prudent reserve management, ensuring that assets held are stable and meet international standards. Despite global discussions on the role of cryptocurrencies in national reserves, the BOK maintains its position against including Bitcoin in its foreign exchange reserves.
This stance aligns with the BOK’s cautious approach toward integrating cryptocurrencies into its financial system, reflecting broader concerns about the stability and reliability of digital assets as components of national reserves.
