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.
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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.
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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.
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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