The Korean bank said that it was approaching the idea of including Bitcoin in its exchange reserves cautiouslyCiting concerns about the extreme volatility of cryptocurrency prices.
In a 16 March 2025 Response to a written survey, the Central Bank officials confirmed that they had neither discussed nor examined the possibility of adding bitcoin to foreign reserves in South Korea.
Their response came after the Cham gyu-geun representative of the planning and financing committee of the National Assembly raised the issue. According to Korea reports HeraldThe Central Bank stressed that a “cautious approach is necessary”.
EXPLORE: 10 pieces with high yields: Crypto 2025 forecast
Bitcoin volatility raises concerns
The Korean Bank underlined the unpredictable price fluctuations of Bitcoin as major concern. Officials noted that during the market instability, Transaction costs to liquidate Bitcoin could increase sharply, making it a risky asset for foreign reserves.
In the past 30 days, the Bitcoin price has fluctuated between $ 98,000 and $ 76,000 before stabilizing around $ 83,000, a decrease of 15% since February 16According to Coingecko.
The discussion surrounding Bitcoin as a reserve ratio has grown in the world, in particular after the recent decree of American president Donald Trump establishing a strategic bitcoin reserve and a stock of digital assets.
During a seminar on March 6Lobbyists of cryptographic industry and certain members of the Korean Democratic Party urged the government to consider integrating Bitcoin into its national reserves and to develop a stablecoin to support.
However, the Korean bank remains firm on its reserve asset criteria, stressing that foreign currency assets must be liquid, easily accessible and have an investment quality credit rating – the requirements he thinks that Bitcoin cannot be met.
NEW:
North Korea joins the Bitcoin Reserve strategic race.
– BTC Heud: 13,562 pic.twitter.com/ybru2wpfu4
– Fiat archive (@fiatarchive) March 17, 2025
North Korea joins the Bitcoin Reserve strategic race.Professor Yang Jun-Seok de Catholic The University of Korea agreed with the position of the Central Bank, declaring that Foreign reserves should be allocated based on the currencies of the main business partners.
Meanwhile, Professor Kang Tae-SOO of the Kaist Graduate School of Finance suggested that the United States is more likely to take advantage of the Stablecoins Rather that Bitcoin to maintain the domination of the dollar.
He added that the recognition of the International Monetary Fund (IMF) of Stablecoins as official reserves could have a significant impact on future monetary policies.
EXPLORE: The best new cryptocurrencies to invest in 2025
South Korea confirms a new regulation for investments in institutional cryptography per third quarter
Last week, the South Korea Financial Services Commission (FSC) Announced plans To issue complete directives for the institutional investment of cryptocurrencies by the third quarter of 2025.
The FSC revealed its roadmap during a meeting with local experts in the cryptography industry on Wednesday, March 12 2025.
Recently, the country too revealed that its cryptographic rules could change while the government plans to raise the commercial ban on corporate cryptography, paving the way to the capital of Korean cryptography.
The 13th FEBRUARY 2025, the country has announced that it Lift his longtime cryptography trading prohibition. The decision has now enabled institutions, non -profit organizations and other business entities to engage in cryptographic transactions in the country.
EXPLORE: 10 best coins IA Crypto to invest in 2025
Main to remember
- The Korean Bank remains prudent to add bitcoin to its foreign reserves Due to its high volatility.
- Managers point out that reserve assets must be liquid, accessible and quality in placement, the criteria that Bitcoin do not meet.
- Meanwhile, South Korea heads for the institutional adoption of cryptography by raising its commercial ban on companies.
The Bank of Korea of Post takes a cautious position on Bitcoin while the reserve appeared first on 99Bitcoins.
