South Korea’s central bank has ruled out the possibility of adding Bitcoin to its foreign exchange reserves.
On March 16, local media outlet Yonhap reported that the Bank of Korea (BOK) dismissed the idea in response to a written inquiry from Representative Cha Gyu-geun of the National Assembly’s Planning and Finance Committee.
The Bank of Korea cited Bitcoin’s high volatility as a primary concern, warning that transaction costs could surge dramatically during market instability. Officials also emphasized that Bitcoin does not meet the International Monetary Fund’s standards for foreign exchange reserves, which require assets to demonstrate liquidity, market stability, and an investment-grade credit rating.
Meanwhile, global discussions about national crypto reserves have intensified, particularly after the U.S. government announced plans to create a Strategic Bitcoin Reserve. Countries like Brazil and the Czech Republic have also indicated a willingness to explore the concept. However, the Bank of Korea stressed the need for a “cautious approach,” noting that other major financial institutions, including the European Central Bank, the Swiss National Bank, and Japan’s financial authorities, also remain skeptical about incorporating Bitcoin into their reserves.
The central bank further clarified that it has neither reviewed nor formally considered the inclusion of Bitcoin in its foreign exchange reserves. Nevertheless, calls to explore the potential role of cryptocurrencies in the country’s financial system have emerged. According to Yonhap, members of the Korean Democratic Party urged the Bank of Korea to assess Bitcoin’s potential during a policy seminar held on March 6.
In a related development, Eun-bo Jeong, Chairman of the South Korea Exchange, is seeking approval for cryptocurrency exchange-traded funds (ETFs) to revitalize the country’s financial markets. During a speech at the 2025 Securities and Derivatives Market Opening Ceremony, he emphasized the significance of alternative assets like crypto ETFs in attracting investors, especially in light of the market’s struggles due to political instability.
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