South Korea’s Central Bank Rejects Bitcoin for Reserves, Citing Stability Concerns

The Bank of Korea (BOK) has ruled out the inclusion of Bitcoin (BTC) in its foreign exchange reserves, emphasizing concerns over price volatility and financial stability, according to a report from Korea Economic Daily.

In response to a question from the National Assembly’s Strategy and Finance Committee, the BOK confirmed on Sunday that Bitcoin has never been considered as part of its reserve holdings, reinforcing its cautious approach toward digital assets.

Bitcoin Deemed Unsuitable for Reserve Management

The BOK cited Bitcoin’s extreme price fluctuations as a key reason behind its decision, stating that wild swings in the crypto market could increase transaction costs and pose risks when converting BTC into fiat.

Furthermore, the BOK highlighted the International Monetary Fund’s (IMF) reserve management guidelines, which stress the importance of liquidity, creditworthiness, and market stability—factors that Bitcoin does not fulfill due to its unpredictable nature.

South Korea’s Crypto Market Remains Active

Despite the BOK’s rejection of Bitcoin as a reserve asset, South Korea remains a major player in the global crypto industry, with local startups, exchanges, and digital asset firms contributing billions in daily trading volume.

As of Monday afternoon in Asia, Bitcoin was trading at $83,400, down 1% in the last 24 hours.