Bank of Korea: Not considering including Bitcoin in foreign exchange reserves

ChainCatcher News, according to the South Korean Economic TV station, the Central Bank of Korea has clearly stated that it "has never considered including Bitcoin in foreign exchange reserves". The Bank of Korea responded on the 16th to written inquiries from Congressman and Planning Finance Committee member Cha Kwi-geun (transliteration), stating, "We believe we need to be cautious about including Bitcoin in foreign exchange reserves."

This is the first time that the Bank of Korea has taken a stance on Bitcoin reserve issues. The primary reason for its negative attitude is due to high volatility in Bitcoin prices. In this regard, the Bank of Korea pointed out: "If virtual asset markets become unstable, there may be risks of sharp increases in transaction costs during bitcoin liquidation. We also think that bitcoin does not meet International Monetary Fund (IMF) standards for calculating foreign exchange reserves. So far, we have never discussed or considered including bitcoin into our foreign exchange reserves." The Bank of Korea added: “As far as we know, some countries like Czech Republic and Brazil hold positive attitudes towards this issue but European Central Bank (ECB), Swiss National bank and Japanese government are all against it.”