Bank of Korea confirms Bitcoin not part of foreign reserves amid volatility concerns.
The Bank of Korea announced it would not consider Bitcoin for its reserves. This statement aligns with previous views by major central banks worldwide.
The central bank cited Bitcoin’s volatility and non-compliance with IMF standards as reasons for this exclusion. The statement was made responding to a National Assembly inquiry.
Bitcoin Trading at $82,000 Amid Bank Decisions
The latest price data indicates that Bitcoin is currently trading at $82,000, experiencing typical price volatility. Experts note the market’s cautious response reflects previous trends.
Kang Tae-soo, Professor at KAIST Graduate School of Finance, stated, “Since the U.S. is likely to leverage stablecoins rather than Bitcoin to maintain dollar hegemony, whether the IMF will recognize stablecoins as foreign exchange reserves in the future is important.”
MK News
Analysts suggest this decision will not dramatically affect Bitcoin’s value but underscore concerns about its suitability as a reserve currency.
Central Banks Hesitant to Use Bitcoin as Reserves
Similar past occurrences highlight central banks’ general reluctance to adopt Bitcoin as reserves. Volatility remains a consistent concern.
Experts project that until Bitcoin stabilizes or gains broader institutional support, its role in reserves will remain limited. The central banks’ stance is informed by careful analysis.
Yang Jun-seok, Professor at Catholic University of Korea, commented, “It is appropriate for foreign exchange to be held in proportion to the currencies of countries with which we trade. Unless major countries issue bonds in Bitcoin, the advantage of holding virtual assets is diminished.”
Business Korea
