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 Core Release Candidate Fixes SQL Connection Pool Deadlock

The latest release candidate addresses a deadlock issue in the SQL connection pool, crucial for node reliability.

user avatarElias Mukuru

Bitcoin Core's October 22 Release Candidate Enhances Wallet Security

The October 22 release candidate of Bitcoin Core introduces important changes to enhance wallet security by bounding fee estimates.

user avatarDiego Alvarez

Solana Launches Create for Branded Yield-Bearing Tokens

On October 22, Solana launched Create, a platform designed to simplify the issuance of branded yield-bearing tokens.

user avatarKenji Takahashi

Key Themes and Expectations for Ripple's Upcoming Conference

Key themes for Ripple's upcoming conference include payments, tokenization, stablecoins, and XRP utility, aiming to provide insights into financial relationships and technical settlement processes.

user avatarGustavo Mendoza

World Discusses Challenges in Transaction Risk Screening

World discusses the complexities of transaction risk screening, highlighting the need for thorough verification of participants and payment destinations.

user avatarRajesh Kumar

Ripple's Swell and Apex Conference Scheduled for October

Ripple's Swell conference is scheduled for October 27-29 in New York, merging with the Apex developer gathering to discuss payments, tokenization, stablecoins, and XRP utility.

user avatarMaria Fernandez

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.