The Central Bank of Zuid -Korea controls Bitcoin as a reserve assets

The Bank of Korea has excluded the inclusion of Bitcoin in its foreign exchange reserves, which refer concerns about the price volatility of the crypto.

In response to an investigation of 16 March by the representative Chagu-Geun of the planning and financial committee of the National Assembly, the Central Bank pointed to the risks of Bitcoin’s price fluctuations, allowing it to make it an unreliable for reserves.

It marks the first time that the central bank has clarified its position on the potential use of the crypto for national reserves, with an emphasis on the “cautious” approach while he deals with the actual.

The explanation of the Central Bank comes in the midst of continuous international discussions about the role of crypto in national reserves after the recent executive command of the US President Donald Trump to set up a strategic ‘crypto reserve’, with Bitcoin (BTC) and Ethereum (ETH) in his heart.

Bitcoin is currently being traded at around $ 83,450, which marks a decrease of 23% compared to his peak of $ 109,000 in January, according to Coingecko.

“If the virtual asset market becomes unstable, there is a concern that transaction costs will quickly rise in the process of converting Bitcoin into cash,” said a central bank spokesperson, according to reports in local media.

The Bank of Korea also said that the world’s largest crypto does not meet the criteria of the International Monetary Fund (IMF) for foreign exchange reserves.

The IMF requires that currency reserves are liquid, sellable and in convertible currencies with credit ratings of investment quality requirements that Bitcoin does not fill, the bank said.

Bitcoin -Reserves in Asia

Last week a seminar organized by the Democratic Party of Korea the possibility of including Bitcoin in the exchange rate reserves of the country, only one day before President Trump signed his executive order.

In the meantime, the closest neighbor of South Korea, Japan, has also shown hesitation with regard to the inclusion of Bitcoin in foreign reserves.

Last December, Japanese Prime Minister Shigeru Ishiba expressed concern about insufficient information about the US plans and other countries for Bitcoin reserves.

The concerns of Ishiba followed a proposal from Satoshi Hamada, a member of the Japanese house of councilors, suggesting that Japan is investigating to convert part of his foreign reserves into Bitcoin.