BOK Rejects Bitcoin for Reserves Due to Volatility

user avatar

by Giorgi Kostiuk

2 years ago

The Bank of Korea has stated their decision against including Bitcoin in the country's foreign exchange reserves.

Bank of Korea's Statement

The Bank of Korea has stated that it has never considered including Bitcoin in the country's foreign exchange reserves. They highlighted the need for caution in adding Bitcoin to financial assets.

Bitcoin Volatility

According to Korea Economic TV, the bank identified Bitcoin's extreme price volatility as a major concern. The price of Bitcoin has ranged from 160 million won to 110 million won recently. Some experts warn that Bitcoin's value could drop to zero at any time.

IMF Criteria for Reserves

The Bank of Korea explained that Bitcoin does not meet the International Monetary Fund's standards for foreign exchange reserves. According to the IMF, reserves must be liquid, marketable, and expressed in a convertible currency with a high credit rating. It was also noted that other major financial institutions, like the European Central Bank, hold negative views on this matter.

"There has been no discussion or review of Bitcoin's inclusion in foreign exchange reserves."The Bank of Korea

The Bank of Korea firmly excludes the possibility of including Bitcoin in their foreign exchange reserves, emphasizing the cryptocurrency's volatility and non-compliance with international standards.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Bitcoin Faces Major Liquidations as Price Dips Below $80,000

Bitcoin's price briefly fell below $80,000, leading to substantial liquidations in long positions.

user avatarMohamed Farouk

Bithumb Reports Significant Data Breach Affecting Customer Information

Bithumb, South Korea's second-largest cryptocurrency exchange, reported a significant data breach involving unauthorized access to its internal systems, leading to a leak of personal information belonging to its customers.

user avatarDiego Alvarez

MEXC and Hacken Launch AI Trading Safety Handbook

MEXC and Hacken launched the AI Trading Safety Handbook to provide guidance on safe AI trading practices.

user avatarKenji Takahashi

Arc Blockchain Surpasses 1 Billion USDC Holdings

Circle's Arc blockchain has achieved over 1 billion USDC in holdings just six weeks post-launch, highlighting its focus on stablecoin payments.

user avatarRajesh Kumar

SUNio Introduces Public Dashboard for Transparency

SUNio has launched a public dashboard for its SUN token buyback and burn program to enhance transparency and allow community members to verify data.

user avatarArif Mukhtar

SUNio Expands Ecosystem with New Partnerships

SUNio has expanded its ecosystem through strategic partnerships with Aveai, TokenPocket, and Symbiosis to enhance liquidity access and facilitate seamless token swaps.

user avatarMiguel Rodriguez

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.