South Korean Central Bank Warns Against Bitcoin Adoption for Foreign Reserves due to High Volatility
South Korea’s central bank has declared it is not considering adding Bitcoin to its foreign exchange reserves, emphasising the need for a “cautious approach” due to volatility.
The BOK expressed concerns about potential transaction costs during market instability and noted that cryptocurrencies fail to meet IMF criteria for foreign exchange reserves.
While the US pushes forward with a Strategic Bitcoin Reserve following Trump’s executive order, which Bitwise CIO Matt Hougan called a “game-changer”, most Americans remain sceptical.
Political tensions in South Korea following former president Yoon Suk Yeol’s impeachment have potentially relegated blockchain and crypto reserve discussions to lower priority status.
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