The Bank of Korea (BOK) Has Never Considered Including Bitcoin in Its Foreign Exchange Reserves

The Bank of Korea (BOK) has firmly stated that it has “never reviewed” the inclusion of Bitcoin

The Bank of Korea (BOK) has definitively stated that it has “never reviewed” the possibility of adding Bitcoin to the country’s foreign exchange reserves.

In response to a written inquiry from Rep. Cha Gyu-geun of the Democratic Party of Korea on March 16, the BOK highlighted the need for prudence in considering Bitcoin as part of Korea’s financial assets.

This marks the first time the BOK has officially addressed the issue. According to Korea Economic TV, the central bank cited Bitcoin’s extreme price volatility as a key factor.

While BTC price predictions vary drastically, with some experts, such as Cathie Wood, anticipating significant future growth, others, like former Treasury Secretary Lawrence Summers, assert that the cryptocurrency’s value could plummet to zero at any time.

“The transaction costs for converting Bitcoin into cash when needed could increase rapidly due to its price volatility, especially during a period of market turmoil,” the BOK noted.

Moreover, the bank emphasized that Bitcoin does not align with the International Monetary Fund’s (IMF) criteria for foreign exchange reserves.

“According to the IMF's standards for including foreign exchange reserves, it must be liquid, marketable, and expressed in a convertible currency with a high credit rating, but Bitcoin does not meet these standards,” the BOK added.

The Bank of Korea further clarified that, to date, no discussions or reviews have occurred regarding Bitcoin’s inclusion in reserves. They stated, “There has been no discussion or review of Bitcoin’s inclusion in foreign exchange reserves so far. It is known that some countries, such as the Czech Republic and Brazil, have expressed positive opinions, but the European Central Bank (ECB), the Swiss National Bank, and the Japanese government have expressed negative opinions.”

This announcement follows broader global narratives, with U.S. President Donald Trump recently signing an executive order for a strategic Bitcoin stockpile, although this would entail only Bitcoin seized through legal processes, not new federal purchases.