• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Bank of Korea Rejects Bitcoin as Reserve Asset, Citing Volatility

user avatar

by Giorgi Kostiuk

6 hours ago


The Bank of Korea announced that it will not use Bitcoin as part of its foreign exchange reserves, citing its volatility. This decision illustrates the bank's cautious approach towards cryptocurrencies amid ongoing international discussions about their role in financial strategies.

South Korean Central Bank's Stance

The Bank of Korea's announcement stems from the need for a cautious approach in managing reserves. This aligns with concerns over significant price fluctuations of Bitcoin observed in recent months. In its official statement, the central bank highlighted the challenges of adding Bitcoin as a reserve asset due to its high price instability and failure to meet IMF criteria.

Current Bitcoin Market Situation

Bitcoin is currently trading at about $83,000, having previously fluctuated between $76,000 and $98,000. Experts note that this trend reflects typical market volatility. Analysts warn of increased transaction costs in converting Bitcoin to cash and highlight potential financial and regulatory risks.

Historical Rejection of Bitcoin by Central Banks

The BOK's stance parallels decisions from major institutions like the European Central Bank, which have also rejected Bitcoin for similar reasons in the past. According to Professor Yang Jun-seok, reserves should reflect trade partner currencies, echoing the preference for more traditional assets in reserves.

It is appropriate for foreign exchange to be held in proportion to the currencies of countries with which we trade.Professor Yang Jun-seok, Catholic University of Korea

The Bank of Korea's decision underscored the continued cautious approach of central banks in adding volatile assets to their reserves. It also indicates the ongoing preference for more traditional financial practices in South Korea's national economic strategy.

0

Share

Other news

Pi Network: Reasons for PI Token's Price Drop Today

The PI token is experiencing a decline. The end of KYC and lack of Binance listing may be factors.

user avatarGiorgi Kostiuk

a few seconds ago

World Network and Razer: New Milestone in Fighting Bots in Games

World Network and Razer introduce human verification technology for Razer ID, enhancing security and fairness in gaming.

user avatarGiorgi Kostiuk

a few seconds ago

New Reward from TokenPicks to Boost Crypto Education Engagement

TokenPicks launches Candy reward to increase user engagement in crypto education.

user avatarGiorgi Kostiuk

a minute ago

Impact of Vitalik Buterin's DHN Sale on the Market

Vitalik Buterin sells 5,000 DHN tokens, leading to a temporary 57% price drop.

user avatarGiorgi Kostiuk

2 minutes ago

Crypto Future: How Market Stability Signals Boom Times Ahead

Crypto market stabilizes, Bitcoin, and Ethereum remain calm, trading volume hits $72.59B. Growth potential evident till 2025.

user avatarGiorgi Kostiuk

12 minutes ago

Cardano and Avalanche Now Available at Zuger Kantonalbank

Zuger Kantonalbank partners with Sygnum to add Cardano and Avalanche to its crypto offering.

user avatarGiorgi Kostiuk

15 minutes ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.