The Bank of Korea says it is approaching the idea of including Bitcoin in its Forex reserves Be carefulcites concerns about the volatility of extreme prices in cryptocurrency.
16 March 2025 Central bank officials confirmed that they did not discuss or review the written survey responses to the possibility of adding Bitcoin to South Korea's foreign reserves.
Their response came after President Cha Kyung of the National Assembly's Planning and Finance Committee raised the issue. According to Report from the Korean HeraldThe central bank emphasized that “a careful approach is needed.”
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Bitcoin volatility raises concerns
Bank of Korea holds unpredictable price fluctuations for Bitcoin Selection subject concern. Officials pointed it out. In an era of market instability, The transaction costs for liquidating Bitcoin can increase dramatically, making it a dangerous asset for foreign reserves.
Over the past 30 days, Bitcoin prices have fluctuated between $98,000 and $76,000, stabilizing around $83,000. February 16thaccording to Coingecko.
The debate surrounding Bitcoin as a protected asset is gaining global momentum, especially after President Donald Trump's recent executive order established a strategic Bitcoin reserve and digital asset stockpile.
At the seminar March 6thcrypto industry lobbyists and some members of the South Korean Democrats have urged the government to consider consolidating the national reserves of Bitcoin and develop winning stubcoins.
However, the Bank of Korea emphasizes that foreign exchange holdings must be liquid, easily accessible and have investment grade credit ratings, and is a demand that Bitcoin believes is not fulfilled.
new:
North Korea will take part in the strategic Bitcoin Reserve Race.
– BTC HELD: 13,562 pic.twitter.com/ybru2wpfu4
– Fiat archive (@fiatarchive) March 17, 2025
Professor Yang Jun Seok Catholic Korea University agrees to the central bank's stance, Foreign reserves must be allocated Based on the currencies of major trading partners.
Meanwhile, Professor Kang Tae-Soo from Kaist's School of Finance suggested that the US is likely to utilize Stablecoins R.Atel More than Bitcoin to maintain control of the dollar.
He added that the International Monetary Fund's recognition of stubcoin as an official reserve could have a major impact on future monetary policy.
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South Korea confirms new regulations for institutional crypto investments in the third quarter
Last week, the South Korean Financial Services Commission (FSC) The announced plans By the third quarter of 2025, we will issue comprehensive guidelines for institutional cryptocurrency investment.
The FSC revealed its roadmap at a meeting with local crypto industry experts on Wednesday. March 12th 2025.
Recently, the country It made it clear that the crypto rules could change as the government plans to lift the ban on crypto trading for businesses and pave the way for South Korea's crypto capital.
13 February In 2025, the country announced that Removing the long-standing ban on crypto trading. The decision has enabled agencies, nonprofits and other business institutions to engage in domestic crypto transactions.
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Key takeout
- The Bank of Korea remains cautious about adding bitcoin to its foreign preparations Because its volatility is high.
- Officials emphasize that reserve assets, a standard that Bitcoin does not meet, must be liquid, accessible and investment grade.
- Meanwhile, South Korea is moving towards institutional adoption of crypto by lifting the ban on corporate trade.
The Korean Post Office has taken a cautious attitude towards Bitcoin as it first appeared in 99 Bitcoin.
