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

Lido Introduces New Community Staking Module for Ethereum Validators

Lido has launched a new Community Staking Module on October 23, allowing Ethereum validators to hold larger effective balances.

user avatarJacob Williams

Understanding Saffron's Vault System

Saffron's current product structure separates upfront payments from uncertain trading fees generated by Uniswap liquidity positions.

user avatarSon Min-ho

Bank Policy Institute Critiques Stablecoin Regulation

The Bank Policy Institute has renewed its criticism of the Office of the Comptroller of the Currency's final stablecoin rule, particularly regarding the treatment of third-party arrangements.

user avatarZainab Kamara

Kraken Introduces SFI Trading on October 23

On October 23, Kraken announced the addition of SFI trading, providing fresh access to a token associated with the Saffron protocol, which has undergone significant changes since its early DeFi days.

user avatarAyman Ben Youssef

Kraken Exchange Announces Withdrawal Phase for 13 Assets

Kraken has officially moved into the withdrawal phase for 13 assets, with trading and deposits set to stop on October 23, 2023. Customers are urged to withdraw their remaining tokens before the exchange begins liquidating balances.

user avatarTando Nkube

Cardano's Leios Scaling Plan Unveiled

Cardano has unveiled a detailed roadmap for its Leios scaling plan, targeting significant increases in transaction capacity with a staged approach for adjustments based on real-world performance.

user avatarKofi Adjeman

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.