The Bank of Korea (BoK) has dismissed the possibility of incorporating Bitcoin into its reserve assets, citing concerns about its inherent volatility and potential risks to national stability. This decision contrasts with recent discussions about a strategic Bitcoin reserve in the United States.
The BoK emphasized that any consideration of cryptocurrency as a reserve asset requires thorough research and a cautious approach. Currently, South Korea’s central bank prioritizes traditional assets, focusing on stability and predictability in its reserves management. The bank’s stance reflects a wider regulatory hesitance towards cryptocurrencies within the South Korean financial system, prioritizing investor protection and economic stability over embracing digital assets. This cautious approach suggests a continued preference for conventional financial instruments in managing the nation’s financial reserves.
