The Bank of Korea (BOK) said it does not plan to include Bitcoin in its foreign exchange reserves. The main reasons for this were the cryptocurrency’s high volatility and potentially high transaction costs. The BoK emphasized that Bitcoin does not meet reserve asset criteria such as liquidity and resilience, especially during periods of market instability.

This stance comes amid a general easing of cryptocurrency regulations in South Korea. The country’s financial authorities are planning to lift the ban on institutional trading of cryptocurrency, which could open up new opportunities for the market. However, the BOK remains cautious, following the recommendations of the International Monetary Fund (IMF), which believes that reserve assets should meet certain criteria.

While some countries, such as the Czech Republic and Brazil, are considering Bitcoin as part of their reserves, many central banks, including the European Central Bank (ECB) and the Bank of Japan, share South Korea’s skepticism. In contrast, the US government recently passed a decree establishing a Bitcoin strategic reserve, highlighting the different approaches to cryptocurrencies around the world.