South Korea does not want to create a strategic reserve of BTC

The Bank of Korea will not add Bitcoin to its strategic reserve, unlike what the United States intends to do. This was reported by the bank's press service.

The bank made this decision due to the high volatility and instability of the cryptocurrency market. This statement was made in response to a written inquiry from Cha Kyoo Kuyn, a representative of the National Assembly’s Planning and Finance Committee.

The Central Bank explained that aside from the sharp fluctuations in Bitcoin's price, transaction costs for cashing out digital currency can rise sharply, which also poses a risk. Additionally, Bitcoin does not meet the International Monetary Fund (IMF) criteria for currency reserves, which must be relatively stable and have a high credit rating. Therefore, the Bank of Korea is not considering or discussing the possibility of including BTC in the country's strategic reserves.

Previously, U.S. President Donald Trump signed an executive order establishing a strategic reserve of Bitcoins, which provides for the storage of assets confiscated by the Treasury in criminal and civil cases.