The United States government may be keen to possess and maintain the stock of digital assets, but not all countries feel the same way. South Korea, for example, expressed its lack of interest including Bitcoin (BTC), or any encrypted currencies, in foreign exchange reserves.
A a report From the local media, Korea’s daily economic economic revealed that the country’s central bank, Korea, is not considering establishing a strategic bitcoin reserves or even including assets in foreign exchange reserves.
No bitcoin reserves for South Korea
According to the report, Korea revealed its position in response to a written investigation by the actor CH Gyu-EGUN, a member of the Democratic Party in Korea and the National Planning and Finance Committee.
In the response dated March 16, the Bank of Korea said it had never thought about BTC in foreign exchange reserves. The bank also mentioned the need to deal with the idea of storage BTC with caution for several reasons.
For beginners, the bank insisted that high bitcoin fluctuations would be a challenge. The price of the original is constantly fluctuating. In the past few weeks, its value has decreased from a height of $ 109,000 to less than 76,700 dollars. The original was traded at 83,500 dollars at the time of the press, with a slight decrease in 24 hours, for all data from Coinmarketcap.
Korea Bank said it may face high transactions due to the market instability when selling BTC and the risks that incur losses during future bitcoin sales.
BTC failed to meet the standards of the International Monetary Fund
In addition, the South Korean Central Bank confirmed that Bitcoin does not meet the standards of the International Monetary Fund (IMF) for its inclusion in foreign exchange reserves. The financial institution cited the standards, which states that the reserves must be available immediately when needed, it has a credit rating at least from the qualified investment degree, and it has liquidity and marketing, and can be expressed in a transformable currency.
To the Bank of Korea, Bitcoin does not meet these standards, and therefore cannot be added to the Foreign Drainage Reserves of the Foundation.
Korea added: “It is known that some countries, such as the Czech Republic and Brazil, have expressed positive opinions, but the European Central Bank (European Central Bank), the Swiss National Bank, and the Japanese government have expressed negative opinions.”
The bank’s response follows many requests to obtain a strategic reserve for bitcoin by financial experts in South Korea and the Democratic Party lawmakers. The invitation to the Bitcoin reserves in the country comes as the US president creates a digital stock in the country.
Binance Free $ 600 (Full Details).
Limited offer for Cryptopotato readers in Bybit: Use this link to register and open a $ 500 free site on any coin!
