- The Korean central bank rejects Bitcoin as currency reserves due to the price volatility and the associated financial risks.
- Experts suggest that South Korea develops a won-based stable coin to beat a bridge between traditional finances and digital assets.
Die Bank of Korea (BOK) Don’t think about itTo include Bitcoin in their foreign exchange reserves. The high price volatility and the possibility that this attitude could affect the country’s financial stability form the basis for this.
Nevertheless, some South Korean parliamentarians and financial analysts have started to work for discussions about it.
According to Korea Economic TV, the Bank of Korea (BOK) stated that it has never considered including Bitcoin in its foreign exchange reserves and believes a cautious approach is necessary. BOK pointed out that Bitcoin’s price is highly volatile, and in times of market…
— Wu Blockchain (@WuBlockchain) March 17, 2025
Currency reserves and the Bitcoin dilemma
Actually, it is not surprising that the BOK decided not to include Bitcoin in its foreign exchange reserves. Stability is the top priority for a central bank. Bitcoin is not suitable for foreign currency reserves that should ideally be liquid and stable because the price can fluctuate strongly within a few hours.
Conversely, some could claim that the diversification of foreign exchange reserves by digital assets such as Bitcoin would be a new approach. Proponents of this concept are of the opinion that BTC could serve as a security against the decay of currencies and offer access to a larger global financial environment.
South Korea’s changing attitude towards cryptor regulation
Although BTC has not yet approved as a foreign exchange reserve, South Korea seems to heat its relationship with the cryptocurrency sector. After pronounced a seven -year ban on the financial instrument, one would apparently want it to allow it in the year.
In addition, the government intends to implement stricter rules for cross -border transactions with digital means. From the second half of the year, this step is to prevent financial crime, in particular money laundering with cryptocurrencies.
Regulatory gaps show risks in digital assets
The high number of criminal proceedings in connection with digital assets is one of the main factors that make the BOK skeptical about Bitcoin. Recently arrested civil servants in South Korea 215 people who were involved in a 320 billion Won (approx. $ 228.4 million) crypto investment fraud.
They promised investors great profits and sold 28 different virtual tokens, which proved to be useless, and thus pursued a rather traditional approach.
This example is even more underpinning that security and regulation in the crypto sector still have major deficits. The BOK must ensure that every asset has an appropriate risk level in its foreign exchange reserves, so this is an absolutely important topic for you.
Progressive approach: plea for a Won StableCoin
Although the Korean central bank has not yet agreed to use Bitcoin in its foreign exchange reserves, the claim from different directions is getting louder.
According to experts, South Korea could take a more progressive attitude, for example by introducing a won-based stable coin to combine the traditional financial system with the world of digital assets.
No Comments