BoK Dismisses Bitcoin as Foreign Exchange Reserve
South Korea’s central bank has ruled out Bitcoin as part of its foreign exchange reserves, citing:
Key Highlights:
- High price volatility
- Non-compliance with IMF liquidity standards
The Bank of Korea (BoK) confirmed this stance in a March 16 response to an inquiry from National Assembly Member Cha Gyu-geun.
Diverging From U.S. and Global Trends
The decision comes amidst growing international discussions on Bitcoin as a reserve asset, particularly after U.S. President Donald Trump’s executive order to build a national Bitcoin reserve.
However, BoK insists that Bitcoin does not meet IMF criteria, which require:
Key Highlights:
- Liquidity and market stability
- Investment-grade credit rating
- Widespread convertibility
Asian Governments Remain Hesitant on Bitcoin Reserves
While South Korea remains skeptical, discussions on Bitcoin reserves are picking up across Asia:
Key Highlights:
- Japan has also resisted Bitcoin reserve proposals
- South Korean lawmakers recently debated Bitcoin’s inclusion in reserves
Despite Bitcoin’s growing acceptance as an institutional asset, South Korea appears unwilling to embrace it as a financial reserve for now.
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