The Bank of Korea has stated the need for a cautious approach regarding the inclusion of Bitcoin in reserves due to its high volatility.
Bank of Korea's Response to Inquiry
In response to an inquiry from Representative Cha Gyu-geun of the Planning and Finance Committee, the Bank of Korea stated it has neither discussed nor reviewed including Bitcoin in reserves, emphasizing a cautious approach due to high volatility.
Bitcoin Volatility and Its Implications
The central bank noted that Bitcoin's price volatility is very high, which may result in increased transaction costs to cash out. Bitcoin prices have fluctuated between $98,000 and $76,000 over the past 30 days, representing a 15% decline since February 16.
International Discussions and Outlook
Global discussions on the role of crypto in national financial strategies are increasing. Recently, US President Donald Trump signed an executive order to establish a strategic Bitcoin reserve. In Korea, the crypto industry and members of the Democratic Party have called for Bitcoin integration in national reserves.
The Bank of Korea emphasizes the importance of liquidity and credit rating for reserve currency, which Bitcoin lacks, advocating for a cautious approach to its inclusion.
