South Korea’s Central Bank Rejects Bitcoin as a Reserve Asset

South Korea’s central bank has ruled out adding Bitcoin to its national reserves, citing its extreme volatility as a key concern, according to a report by Korea Economic TV.

The decision comes amid discussions within the country’s political landscape. Some industry figures have urged the Democratic Party of Korea to address the U.S. government’s recent move to establish a Bitcoin reserve, which includes confiscated cryptocurrency holdings.

The U.S. has also built up reserves of other digital assets, prompting questions about whether South Korea should follow suit.

A Democratic Party member formally inquired about the Bank of Korea’s position on Bitcoin reserves, but the central bank dismissed the idea, reaffirming its traditional approach to reserve management.

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South Korea currently holds around $410 billion in foreign exchange reserves, making it the world’s 12th-largest economy.

Globally, central banks have largely remained skeptical of Bitcoin as a reserve asset. Earlier this year, European Central Bank President Christine Lagarde stated that the ECB and other members of the General Council had no intention of holding Bitcoin.

This response followed a proposal by the governor of the Czech National Bank, Ales Michl, who suggested investing billions in Bitcoin as a diversification strategy.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.