Bitcoin Declines South Korea Strategic Reserve

Bitcoin Declines South Korea Strategic Reserve

cryptoslate.com
March 17, 2025 by Jhon E. Bermúdez
11
Okay, here’s the rewritten version aiming for a more natural and engaging tone while preserving the HTML tags and original meaning: <div data-td-block-uid="tdi_61"> <div class="tdb-block-inner td-fix-index"> <p>The Bank of Korea (BOK) <a href="https://www.koreaherald.com/article/10442438" target="_blank" rel="noopener">has shut down</a> any talk of creating a strategic bitcoin reserve, explaining they're worried about its famously unstable price and the
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  <p>The Bank of Korea (BOK) <a href="https://www.koreaherald.com/article/10442438" target="_blank" rel="noopener">has shut down</a> any talk of creating a strategic bitcoin reserve, explaining they're worried about its famously unstable price and the risks involved.  This announcement comes even as the idea of using bitcoin as part of national reserves is being seriously discussed around the world, especially after plans for a US reserve were floated.</p>
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  <p>When directly asked by a member of the National Assembly’s Strategy and Finance Committee, the central bank firmly said "no" to adding bitcoin to their holdings.  Top officials at the BOK highlighted bitcoin's roller-coaster price swings as the main problem. They pointed out that if the market gets rocky, the costs to turn bitcoin back into regular money "could skyrocket."</p>
 <p>As of March 17th, bitcoin was trading at about $83,500, which is a significant 23% drop from its high of $108,000 just back in January. The BOK cautioned that this kind of extreme up-and-down movement is just too risky for their reserves.</p>
 <p>The bank further explained that bitcoin simply doesn't meet the International Monetary Fund’s (IMF) rules for what can be considered a reserve asset.  The IMF wants to see reserves managed carefully to control risks related to things like how easily you can sell them, market swings, and credit – standards that, in the BOK’s view, bitcoin doesn’t currently meet.</p>
 <p>This firm stance is the first time the South Korean central bank has officially addressed the possibility of using bitcoin as a reserve. They made it clear they're taking a “cautious approach” – to put it mildly – when it comes to bitcoin.</p>
 <p>This rejection of a strategic bitcoin reserve is happening even as the potential of crypto in national reserves is getting more and more attention globally. Just earlier in March, discussions around U.S. President Donald Trump signing an executive order to create a strategic bitcoin reserve really kicked off the conversation. This got South Korea and other Asian countries thinking about whether they should follow suit.</p>
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Source: bitcoinmagazine.com