The Bank of Korea said it is taking a “careful approach” to the potential with Bitcoin as a foreign exchange reserve.
Officials from the Korean Central Bank said in a March 16th response to a written inquiry that they did not view a potential Bitcoin (Btc) reserve, citing high volatility.
Responding to a question from the Representative Cha Gyu-geun of the National National Planning and Finance Committee, the central banks said they also did not discuss or evaluate the possible Bitcoin integration in foreign exchange reserves, added that “a careful approach is required,” According to In the Korea Herald.
“The volatility of bitcoin prices is very high,” the aforementioned central bank, before adding that “in the case of the cryptocurrency market, the transaction costs may increase by bitcoins.
In the past 30 days, bitcoin prices have been wild between $ 98,000 and $ 76,000 before adjusting to current levels of nearly $ 83,000 in a 15% decline since Feb. 16, According to This coingecko.
The decision came amidst rising global discussions about the role of crypto assets in national financial strategies, provoked by the executive order of President Donald Trump earlier this month establishing a Strategic Bitcoin Reserve and digital asset stockpile.
During a seminar on March 6, lobbyists of the crypto industry, and some members of the Korean democratic party have encouraged the country to include Bitcoin National reserve and develop a winner supported by stablecoin.
However, the Bank of Korea emphasized that foreign exchange reserves should have liquidity and are immediately available as needed, as well as a grade grade credit rating or higher, Bitcoin’s standards, in its opinion.
Professor Yang Jun-Seok of the Catholic University of Korea is in agreement, saying that “it is necessary for the foreign exchange to be held in proportion to the currencies of the countries we have exchanged,”
Professor Kang TAE-soo from the Kaist Graduate School of Finance commented on the US that stablecoins would likely use the BTC instead of BTC to maintain dollar hegemony before adding, if the IMF recognizes Stablecoins as foreign exchange reserves in the future will be important. “
Related: Democrat lawmaker urges Treasury to stop Trump’s Bitcoin reserve plans
Earlier this month, the South Korean financial regulator Reviewed The legislative trend of the Japanese Financial Services Agency’s agency to crypto assets as it lifts a ban on crypto funds in the country.
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