Korea’s central bank did not consider creating a BTC reserve due to the high volatility of the asset
The regulator stated that the asset does not have the necessary credit rating and does not have sufficient liquidity
17.03.2025 - 10:50
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What’s new? South Korea’s central bank commented on the possibility of creating a national bitcoin reserve. The regulator said that a “cautious approach is necessary” in this matter, and in general it has not yet been considered due to the unstable price of the first cryptocurrency.
What else is known?
“Bitcoin’s price volatility is very high. In the case of cryptocurrency market instability, transaction costs to cash out Bitcoins could rise drastically,” the central bank responded to an inquiry from a member of the National Assembly’s Planning and Finance Committee.
According to crypto market data aggregator CoinGecko, bitcoin’s exchange rate has fluctuated between $99 240 and $77 190 over the past 30 days. At the time of writing, it was at $83 440, down by 15% from a month ago.
South Korea will present a new bill on crypto regulation in the second half of the year
Officials intend to add rules for issuers of stablecoins to the document
In the assembly’s core committee, the issue arose amid a growing global debate about the role of crypto assets in national financial strategies, prompted by US President Donald Trump’s executive order to create a strategic bitcoin reserve and digital asset stockpile.
At a March 6 meeting, crypto industry lobbyists and some members of the Democratic Party of Korea urged authorities to integrate BTC into national reserves and develop a stablecoin pegged to the national currency, won.
In a new response, the Bank of Korea emphasized that its foreign exchange reserves should be liquid for immediate use when needed and have an investment grade credit rating or higher, criteria it believes bitcoin does not meet.
Korea Exchange chairman suggests launching cryptocurrency ETFs
He believes this would provide investors with a more regulated way to access digital assets
Earlier this month, it was reported that South Korea’s financial regulator is studying the possibility of lifting a ban on cryptocurrency-based exchange-traded funds (ETFs).
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