Bank of Korea Dismisses Bitcoin as Reserve Asset Amid U.S. Crypto Initiative

The Bank of Korea (BOK) has confirmed that it has never considered adding Bitcoin to its national reserves, citing concerns over its high volatility. According to a report by Korea Economic TV, the central bank does not view Bitcoin as meeting the necessary standards for inclusion.

This statement comes amid growing discussions in South Korea following the U.S. government's recent move to establish a Bitcoin reserve. The U.S. initiative, which includes forfeited Bitcoin and a stockpile of alternative cryptocurrencies, has sparked interest among South Korean industry leaders and lawmakers. In response, a Democratic Party of Korea (DP) member formally inquired about the BOK’s position on Bitcoin as a reserve asset.

Despite South Korea being the world's 12th largest economy with approximately $410 billion in reserves, the central bank remains firm in its stance against Bitcoin. Experts believe that Bitcoin’s extreme price fluctuations and regulatory uncertainties make it an unsuitable asset for national reserves.

Meanwhile, the cryptocurrency landscape in South Korea continues to evolve. Recent reports indicate that XRP is the most preferred cryptocurrency in the country, surpassing Ethereum in popularity. This shift reflects changing market dynamics and investor sentiment in the region.

As discussions on cryptocurrency reserves continue worldwide, South Korea’s central bank remains cautious, emphasizing financial stability over digital asset adoption. While some policymakers and industry leaders push for a more progressive stance, the BOK’s position reinforces its preference for traditional financial instruments in managing national reserves.

With global interest in Bitcoin growing, it remains to be seen whether South Korea will reconsider its stance in the future. For now, the central bank’s rejection underscores the ongoing debate over Bitcoin’s role in the global financial system.