Bitcoin doesn’t meet foreign reserve standards

South Korea does not intend to integrate Bitcoin into its exchange reserves, according to the central bank of the country.

On March 16, local media Yonhap reported That managers of the Korean bank have excluded from the addition of Bitcoin (BTC) to his exchange reserves in response to a written investigation by the Cha Gyu-Geun representative of the planning and financing committee of the National Assembly.

The central bank has cited the high volatility of Bitcoin as a major concern, warning that “transaction costs to withdraw bitcoins could increase considerably” if the cryptography market is instability.

Officials have also stressed that Bitcoin does not meet the criteria of the International Monetary Fund for exchange reserves, which require assets to maintain liquidity, market stability and a credit rating of the or more investment note.

Discussions on crypto national reserves have gained ground worldwide, in particular following the decision of the US government of Establish a strategic bitcoin reserve. Some countries, such as Brazil and the Czech Republiceven expressed the opening to the idea.

However, the Bank of Korea argued that a “prudent approach” is necessary, noting that institutions such as the European Central Bank, the Swiss National Bank and the financial authorities of Japan share an equally skeptical position.

The bank also specified that it had neither examined nor officially discussed the possibility of incorporating bitcoin into its reserves.

According to Yonhap, some members of the Korean Democratic Party urged the Central Bank to explore the potential role of Bitcoin in the country’s financial system in a political seminar of March 6.

As before reported By Crypto.News, the Financial Services Commission also adopted a similar position. In November, the president of the FSC, Kim Byung-Hwan

However, South Korea has gradually loosened its position on cryptographic regulations. The country’s financial guard dog has worked on the lifting of restrictions on the institutional trade in cryptography and prepares a second legal framework focused on the surveillance of stablescoin.

Political decision -makers are also considering Allow funds negotiated in exchange for crypto, which, according to the president of Korea Exchange, could bring new opportunities to the country’s financial sector.