In the midst of the increasing call for Bitcoin reserves, South Korea has clearly stated that “it has never thought about Bitcoin’s reserves in foreign exchange reserves.”
South Korea says officially not for bitcoin reserves?
In response to a written investigation by a member of Congress and a member of the Planning and Finance Committee, Che Gueen (translation), Correa said at the sixteenth, “We believe that we need to be careful in including Bitcoin in our foreign currencies.”
This is the first time that the Korea Bank explicitly expressed its position on the issue of bitcoin reserves. The main reason for saying no bitcoin reserves, It is the high volatility of bitcoin. In response, the Bank of Korea pointed out, “If the virtual asset market becomes unstable, Bitcoin may face a sharp increase in transactions during the cash exit process. We believe that Bitcoin also does not meet the standards of foreign exchange reserves account (IMF).
The Bank of Korea added: “It is understood that some countries such as the Czech Republic and Brazil have a positive position towards this, but the European Central Bank (European Central Bank), the Swiss National Bank and the Japanese government expressed their opposition.”
The important South Korea decision comes at a time when US President Donald Trump, who previously promised Bitcoin reserves, has now proposed a strategic reserve for bitcoin by including bitcoin currencies that were seized through civil and criminal confiscation procedures, saying that additional purchases will not be made immediately.
Also read: South Korea to accelerate the formulation of the second stage of the cryptocurrency bill
