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**The Korean Central Bank: Bitcoin Falls Short of Meeting Requirements for Overseas Currency Stockpiles**
The Bank of Korea has revealed that it presently lacks any intentions to incorporate Bitcoin within its international currency stockpiles.
Per a March 16 dispatch via Yonhap News Agency, a spokesperson representing the Bank of Korea, addressing a formal query from Cha Gyu-geun, an assemblyman on the National Assembly’s Strategy and YZi Endorses Plume Network to Bridge Traditional Finance and DeFi Committee, refuted any chance of adding Bitcoin (BTC) into its foreign currency reserves.
The Bank of Korea representative highlighted that Bitcoin’s considerable unpredictability poses a substantial worry and cautioned that should the digital currency sphere become shaky, “the expenses associated with converting Bitcoin to cash might escalate dramatically.”
The representative additionally underscored that Bitcoin doesn’t adhere to the International Monetary Fund’s criteria for international currency reserves, which mandate that assets uphold market steadiness, accessibility, and a credit evaluation of investment-grade or superior.
Across the globe, dialogues pertaining to national digital currency reserves are intensifying, notably following the U.S. government’s choice to institute a strategic Bitcoin stockpile. Select nations, inclusive of the Czech Republic and Brazil, have even voiced receptiveness toward the notion.
Nonetheless, the Bank of Korea stressed the necessity for “prudence” and observed that entities such as the European Central Bank, the Swiss National Bank, and Japanese monetary regulators likewise harbor comparable misgivings.
The Bank of Korea further articulated that it has neither officially deliberated nor scrutinized the feasibility of incorporating Bitcoin into its reserves.
As per Yonhap News Agency, during a policy research gathering on March 6, certain individuals from the Democratic Party of Korea implored the central financial institution to probe Bitcoin’s prospective function within the nation’s monetary framework.
As earlier documented via crypto.news, the Financial Services Commission has likewise adopted an identical posture.
In November, Kim Joo-hyun, who heads the Financial Services Commission of South Korea, recognized requests to form a nationwide Bitcoin reserve. Nevertheless, he conveyed that thinking about such a concept is untimely right now.
The chairman of South Korea’s marketplaces opines this might reveal fresh prospects for the nation’s economic division. Lawmakers are also probing the chance of permitting cryptocurrency exchange-traded funds (ETFs). South Korea has been steadily relaxing its position on cryptocurrency rules. The country’s economic controllers are vigorously trying to eliminate limitations on institutional cryptocurrency commerce and are devising a second lawful structure centered on stablecoin rule.
