THE Korea Bank (Bok) The officials provided clear reasoning behind their decision to reject the plans of a Bitcoin strategic reserve, emphasizing a prudent approach anchored in financial stability and international standards. Their statements, mainly in response to requests from the legislators, highlight several key concerns.
BOK officials highlighted the extreme volatility of Bitcoin prices as a means of main deterrence. They noted that the value of the cryptocurrency can undergo wild oscillations, recently trading around $ 83,500 after dropping 23% against a peak of $ 108,000 earlier in 2025.
They argue that such fluctuations could cause significant risks for exchange reserves in South Korea, which are currently amounting to around $ 410 billion. More specifically, they stressed that in period of market instability, the transaction costs to convert Bitcoin into cash “Could increase considerably”, Soft the liquidity and reliability necessary for reserve assets. Another critical point of Bok officials is Bitcoin’s failure to meet the International Monetary Fund (IMF) Criteria for reserve assets. The IMF requires that reserves be liquid, marketable and held in convertible currencies with investment quality credit ratings – Bitcoin standards will not satisfy.
Officials have stressed that exchange reserves must be “immediately usable if necessary”, a quality which, according to Bitcoin, is lacking due to its volatility and its lack of general acceptance as a stable value store. In a declaration responding to a written investigation by the representative Cha Kyu-Geun of the Rebuild Korea Festival On March 16, 2025, the Bok said it “Has neither discussed nor examined the possible inclusion of bitcoin in exchange reserves.” It was a direct refutation of increasing domestic speculation, stimulated by the recent decision of the United States to establish a Bitcoin strategic reserve under President Donald Trump.
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The position of the Bok is that a “A cautious approach is necessary”, “ Reflecting a broader trend among the main central banks such as the European Central Bank and the Swiss National Bank, which have also expressed reserves on Bitcoin. Officials also contrasted the position of South Korea with countries like the Czech Republic, where leaders have shown the opening to Bitcoin reserves, noting that global opinions remain divided. However, the BOK aligns more closely with conservative financial institutions, prioritizing stability on experimentation.
They indicated that no official discussion had taken place, pointing out a firm rejection of the idea for the moment, even if the political landscape of South Korea – potential elections and pro -Crypto feelings of South Korea – parts of the Democratic Party – are reprimenting for more progressive cryptographic policies. The declarations of the managers of the BOK reveal a deliberate focus on risk aversion, based on the volatility of Bitcoin, the challenges of liquidity and the non-compliance of the IMF standards, the positioning of South Korea as a cautious observer rather than a pioneer in the cryptographic reserve space.
In the United States, the Trump administration pivoted a friendly Crypto framework. An executive decree in January 2025 established a working group to write new regulations and explore a stock of national assets of cryptocurrencies entered. The United States has also repealed the strict rules of the IRS DEFI broker and interrupted the actions to apply the SEC, signaling a lighter regulatory key. The legislation on the stablescoin is gaining ground, with bills such as Clarity for Payment Stablecoins Act Under the study, although a digital currency of the Central Detail Bank (CBDC) has been excluded.
