Following Trump's Bitcoin reserve order, discussions about holding BTC as a strategic reserve asset have begun in South Korea.

Following U.S. President Donald Trump's signing of an executive order stating that he would 'make Bitcoin a strategic reserve asset,' discussions about the government's virtual asset reserves have begun in South Korea.

Following U.S. President Donald Trump's signing of an executive order stating that he would "make Bitcoin a strategic reserve asset," discussions about the government's virtual asset reserves have begun in South Korea.

As the government has decided to gradually allow corporate accounts for virtual assets, the Democratic Party also held a seminar on the topic of "including Bitcoin in the foreign exchange reserves or investing in it through the national pension."

However, is it necessary for South Korea to hold virtual assets as part of foreign exchange reserves or national pension assets? A survey by ChosunBiz of 10 domestic financial and currency experts found that all respondents answered, "It's too early."

◇ All experts say, 'Holding virtual assets in foreign exchange reserves is difficult to implement.'

According to the political circles on the 14th, the ruling Democratic Party's policy planning department discussed options for "integrating Bitcoin into the foreign exchange reserves" and "considering the activation of stablecoins" at a seminar held on the 6th.

At this meeting, Kim Byung-wook, chief deputy director, highlighted the significant impact of President Trump's strategic reserve assets for virtual assets on our country.

In addition, Kim Jong-sung, CEO of Excriptone, an enterprise blockchain company, claimed that the Bank of Korea and the Ministry of Economy and Finance should also consider including Bitcoin in the foreign exchange reserves, like the United States.

Foreign exchange reserves are external payment reserve assets that central banks or governments hold to use at any time to correct balance of payments imbalances or to stabilize foreign exchange markets. They refer to gold and foreign exchange reserves. The reserves are primarily invested in safe assets such as government bonds issued in advanced country currencies, agency bonds, and corporate bonds, as well as stock funds and cash assets.

However, a significant number of domestic experts hold the view that investing in Bitcoin does not align with the primary purpose of foreign exchange reserves.

"It's an absurd suggestion to buy Bitcoin with foreign exchange reserves used for macroeconomic stability and balance of payments adjustment," said Shin Sedon, a professor of economics at Sookmyung Women’s University.

Pointing out that assets invested in foreign exchange reserves must be stable, Shin Kwan-ho, a professor of economics at Korea University, stated, "Bitcoin, which has no intrinsic value and is subject to price fluctuations due to speculation, is unsuitable for inclusion in foreign exchange reserves."

Many experts, like Lee Kyung-jae, a professor at Sejong University, and Kim Guang-tae, a professor at Hallym University, also expressed skepticism, deeming it too early to consider such an idea.

Among the three functions of money—medium of exchange, measure of value, and store of value—Bitcoin only performs the value storage function to a limited extent, and it is not clear whether it can be used as a unit of account in the final analysis.

"For Bitcoin to be included in foreign exchange reserves, it would need to be used in the global international payment system or have an overwhelming share of the cryptocurrency market, like a world reserve currency," explained Lee Boo-hyung, a director at the Hyundai Economic Research Institute.

Kim Jeong-sik, an emeritus professor at Yonsei University, added, "It is inappropriate to mention the possibility of Korea, a small open economy with a rapidly aging population, investing in or holding Bitcoin, which has high price volatility and is linked to illegal elements, through foreign exchange reserves, sovereign wealth funds, or the Korea Investment Corporation."

However, there were also opinions that while the U.S. government does not necessarily advocate for holding Bitcoin through investment, South Korea needs to discuss this matter. Trump stated on the 7th (local time) that strategic reserves of Bitcoin mean holding it without selling the Bitcoin seized by the federal government through crime or confiscation.

In other words, it is not about the government investing in Bitcoin but rather about the government continuing to hold the Bitcoin that has already been paid in taxes or seized by the Internal Revenue Service (IRS) and the Department of Justice (DOJ) in cases of crime.

According to the U.S. government, about 10,000 to 15,000 bitcoins are seized annually. If the IRS or DOJ were to sell this bitcoin, the revenue would be paid into the Treasury account and used for government spending. However, if they were to keep the bitcoin and use it as an asset, it would be managed by the Treasury.

Hah Jun-kyung, a professor of accounting at Hanyang University, remarked, "President Trump is not suggesting that the U.S. government should purchase bitcoin with its assets or invest in it. He is suggesting that the government should retain the bitcoin that is already in the government's possession."

"Our country also needs to discuss how to handle the seized virtual assets like the U.S. government does," said Hah, adding that the discussion on the government investing in