Crypto News: Bank of Korea Rejects Bitcoin for Foreign Exchange Reserves

The Bank of Korea (BOK) has firmly stated that it has “never reviewed” the inclusion of Bitcoin in the country’s foreign exchange reserves. In a response to a written inquiry from Rep. Cha Gyu-geun of the Democratic Party of Korea on March 16, the BOK opened up about the need for caution when considering Bitcoin as part of the country’s financial assets.

This marks the first time the BOK has officially addressed the issue. According to Korea Economic TV, the central bank cited Bitcoin’s extreme price volatility as a major concern. The price of Bitcoin has seen sharp fluctuations recently, soaring to 160 million won in January, before falling to 110 million won. Despite predictions of potential future growth, some experts warn that Bitcoin’s value could drop to zero at any time.

Bitcoin Fails to Meet IMF Reserve Standards

The BOK explained that such instability could lead to increased transaction costs when converting Bitcoin into cash, particularly during periods of market turmoil. Additionally, the bank pointed out that Bitcoin does not meet the International Monetary Fund’s (IMF) standards for foreign exchange reserves. According to the IMF, foreign exchange reserves must be liquid, marketable, and expressed in a convertible currency with a high credit rating.

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The Bank of Korea further stated that, to date, no discussions or reviews have taken place regarding Bitcoin’s inclusion in reserves. They said, 

“There has been no discussion or review of Bitcoin’s inclusion in foreign exchange reserves so far. It is known that some countries, such as the Czech Republic and Brazil, have expressed positive opinions, but the European Central Bank ( ECB ), the Swiss National Bank, and the Japanese government have expressed negative opinions.”

This announcement comes amid broader global debates, with U.S. President Donald Trump Donald Trump   Donald J. Trump is a US-based business tycoon,  pro-crypto politician, and 47th (present) President of the United States. He comprehends the significance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto politician.   Once doubtful about Bitcoin's dominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his pool. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Famous For Business, Politics   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Slammed crypto king Bitcoin on X, calls it "not money".   2025 – A gala party was hosted by him for the top 220 Trump meme coin holders.   President recently signing an executive order for a strategic Bitcoin stockpile, although this would involve only Bitcoin seized through legal processes, not new federal purchases.