The Bank of Korea has drawn a line saying it has not "reviewed" Bitcoin's incorporation into its foreign exchange reserves.

This is based on the judgment that there is no real benefit because there is a large uncertainty and it does not meet global standards.

The Bank of Korea has no plans to review including Bitcoin in its foreign exchange reserves. This stance is based on the judgment that there is no real benefit because there is a large uncertainty and it does not meet global standards.

According to Cha Kyu-geun of the Cho Kuk Innovation Party of the National Assembly's Strategy and Finance Committee on the 16th, the Bank of Korea said, "We need to take a careful approach to Bitcoin's incorporation into its foreign exchange reserves," adding, "We have not discussed or considered Bitcoin's incorporation into its foreign exchange reserves so far." It is the first official position expression since related ideas were recently presented by the opposition party.

The Bank of Korea believes that Bitcoin is not appropriate as a foreign currency held due to high price volatility. The Bank of Korea said, "If the virtual asset market becomes unstable, there is a concern that transaction costs will rapidly expand in the process of monetizing Bitcoin." Bitcoin prices have soared to the 160 million won level in January and have recently fallen to nearly 50 million won.

It also does not meet the criteria for calculating global foreign exchange reserves. Foreign exchange reserves are a method in which each country counts its assets according to the International Monetary Fund's own standards. The main criteria are △ liquidity and marketability, △ currency with convertibility (exchangeability), and △ having a credit rating of more than eligible investments. Even if Bitcoin, which falls short of such standards, has foreign exchange reserves, it is highly likely that overseas will not recognize it as an external safety plate.

The Bank of Korea explained, "Some countries, including the Czech Republic and Brazil, are known to have expressed positive opinions, but the European Central Bank (ECB), the Swiss Central Bank, and the Japanese government have expressed negative views."

Earlier on the 6th, U.S. President Donald Trump issued an executive order ordering Bitcoin's strategic stockpile. However, it said that it is subject to stockpiles of federally owned Bitcoin seized in accordance with civil and criminal confiscation procedures and does not immediately make additional purchases.