Bank of Korea Rejects Bitcoin as a Reserve Asset

The Bank of Korea has officially ruled out the possibility of including Bitcoin in its foreign exchange reserves, emphasizing that it does not meet the standards set by the International Monetary Fund.

According to the IMF's criteria, central bank reserve assets must be liquid, market-stable, and have an investment-grade credit rating. Bitcoin, however, is characterized by high volatility, making it unsuitable for such use. Bank officials have highlighted that the risk of high conversion costs during periods of economic instability is another factor discouraging the adoption of Bitcoin as a strategic reserve.

While the U.S. initiative to create a Bitcoin reserve has gained global attention, South Korea maintains a conservative approach, aligning itself with the stance of other major financial institutions such as the European Central Bank and the Swiss National Bank.

At present, despite pressure from local industry leaders and some members of South Korea’s Democratic Party, the central bank has no plans to reconsider this decision.