{"id":125200,"date":"2025-03-17T04:15:27","date_gmt":"2025-03-17T04:15:27","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125200"},"modified":"2025-03-17T04:15:27","modified_gmt":"2025-03-17T04:15:27","slug":"bank-of-korea-to-take-cautious-approach-to-bitcoin-reserve","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125200","title":{"rendered":"Bank of Korea to take \u2018cautious approach\u2019 to Bitcoin reserve"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsThe Bank of Korea says it is taking a \u201ccautious approach\u201d to potentially including Bitcoin as a foreign exchange reserve.<br \/>\nOfficials from the Korean central bank said in a March 16 response to a written inquiry that they have not looked into a potential Bitcoin (BTC) reserve, citing high volatility.\u00a0<br \/>\nResponding to a question from Representative Cha Gyu-geun of the National Assembly\u2019s Planning and Finance Committee, central bankers said that they have \u201cneither discussed nor reviewed the possible inclusion of Bitcoin in foreign exchange reserves, adding that \u201ca cautious approach is needed,\u201d according to the Korea Herald.<br \/>\n\u201cBitcoin\u2019s price volatility is very high,\u201d the central bank noted, before adding that \u201cin the case of cryptocurrency market instability, transaction costs to cash out Bitcoins could rise drastically.\u201d<br \/>\nOver the past 30 days, Bitcoin prices have swung wildly between $98,000 and $76,000 before settling at current levels of around $83,000 in a 15% decline since Feb. 16, according to CoinGecko.\u00a0<br \/>\nThe decision comes amid increasing global discussions on the role of crypto assets in national financial strategies, sparked by US President Donald Trump\u2019s executive order earlier this month establishing a strategic Bitcoin reserve and digital asset stockpile.\u00a0\u00a0<br \/>\nAt a seminar on March 6, crypto industry lobbyists, and some members of Korea\u2019s Democratic Party urged the country to integrate Bitcoin into its national reserves and develop a won-backed stablecoin.\u00a0<br \/>\nHowever, the Bank of Korea emphasized that its foreign exchange reserves must have liquidity and be immediately usable when needed, as well as a credit rating of investment grade or higher, criteria that Bitcoin does not meet, in its opinion.\u00a0<br \/>\nProfessor Yang Jun-seok of Catholic University of Korea concurred, stating \u201cit is appropriate for foreign exchange to be held in proportion to the currencies of countries with which we trade,\u201d<br \/>\nProfessor Kang Tae-soo from the KAIST Graduate School of Finance commented on the US being likely to leverage stablecoins rather than BTC to maintain dollar hegemony before adding, \u201cWhether the IMF will recognize stablecoins as foreign exchange reserves in the future is important.\u201d<br \/>\nRelated: Democrat lawmaker urges Treasury to cease Trump\u2019s Bitcoin reserve plans<br \/>\nEarlier this month, South Korea\u2019s financial regulator examined the Japanese Financial Services Agency\u2019s legislative trend toward crypto assets as it mulls lifting a ban on crypto exchange-traded funds in the country.<br \/>\nMagazine: ETH may bottom at $1.6K, SEC delays multiple crypto ETFs, and more: Hodler\u2019s Digest<a href=\"https:\/\/cointelegraph.com\/news\/south-korea-central-bank-cautious-stance-potential-bitcoin-reserve?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsThe Bank of Korea says it is taking a \u201ccautious approach\u201d to potentially including Bitcoin as a foreign exchange reserve. Officials from the Korean central bank said in&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125200"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125200"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125200\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125200"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}