Bank of Korea Snubs Bitcoin: “Nope, Not Ready for Prime Time”

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South Korea’s central bank just gave Bitcoin the cold shoulder, saying it won’t be joining the country’s foreign exchange reserves anytime soon. 🤷‍♀️

On Mar. 16, Yonhap reported that the Bank of Korea (BOK) shot down a written inquiry from Representative Cha Gyu-geun of the National Assembly’s Planning and Finance Committee. The BOK’s response? A big, fat “Nope.”

The BOK’s main beef? Bitcoin’s wild price swings. They warned that “transaction costs to cash out Bitcoins could rise drastically” if the crypto market goes haywire. 🚀💥

But wait, there’s more! The BOK also pointed out that Bitcoin doesn’t meet the International Monetary Fund’s (IMF) criteria for foreign exchange reserves. Apparently, to make the cut, assets need to maintain liquidity, market stability, and a credit rating of investment grade or higher. Bitcoin, apparently, is more like a rollercoaster than a blue-chip stock. 🎢

While some countries, like Brazil and the Czech Republic, are warming up to the idea of national crypto reserves, the BOK is sticking to its guns. They’re taking a “cautious approach,” which is fancy talk for “let’s wait and see.” And they’re not alone—other big players like the European Central Bank, the Swiss National Bank, and Japan’s financial authorities are also on the fence. 🤔

The BOK made it clear that they haven’t even formally discussed the idea of adding Bitcoin to their reserves. So, it’s safe to say they’re not exactly jumping at the opportunity. 🤷‍♂️

Some members of the Korean Democratic Party tried to push the issue at a March 6 policy seminar, but the BOK wasn’t buying it. The Financial Services Commission (FSC) has also been skeptical. In November, FSC Chairman Kim Byung-hwan acknowledged the calls for a national Bitcoin reserve but dismissed the idea as premature. 🕵️‍♂️

However, South Korea isn’t completely shutting the door on crypto. They’ve been gradually loosening their stance on crypto regulations. The country’s financial watchdog is working on lifting restrictions on institutional crypto trading and is preparing a second legal framework focused on stablecoin oversight. 📝

Policymakers are even considering allowing crypto exchange-traded funds (ETFs), which could bring fresh opportunities to the country’s financial sector. So, while Bitcoin might not be making the cut for now, the crypto world in South Korea is still evolving. 🌱

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2025-03-17 09:04