The Bank of Korea is cautious about using Bitcoin as a foreign exchange reserve due to its high volatility.
Why the Bank of Korea Does Not Trust Bitcoin
The Bank of Korea considers Bitcoin's price volatility to be too high, potentially increasing transaction costs significantly when cashing out. Bitcoin prices have dropped by 15% since February 16 and fluctuated between $98,000 and $76,000 over the last 30 days, now hovering around $83,000.
What Other Countries Are Thinking About Bitcoin Reserves
US President Donald Trump previously issued an executive order establishing a strategic Bitcoin reserve and digital asset stockpile, sparking worldwide discussions on the role of crypto assets in national financial strategies. Meanwhile, some members of Korea's Democratic Party and crypto industry lobbyists have urged the country to include Bitcoin in its national reserves.
Final Thoughts
While the US is moving forward with Bitcoin reserves, South Korea remains cautious. The Bank of Korea finds Bitcoin too risky, yet some experts and politicians see it as the future. It remains uncertain if Korea will change its stance, but cryptocurrencies are definitely becoming a significant part of global financial discussions.
The Bank of Korea's concerns about Bitcoin as a reserve asset reflect the ongoing global debate about the role of cryptocurrencies in national financial systems.
