BOK Denies Bitcoin Inclusion In Forex Reserves

Seoul: The South Korean central bank has called for a ‘cautious approach’ to the idea of including bitcoin as foreign exchange reserves given its price volatility, officials said on Sunday.

There have been discussions among lawmakers about the possible inclusion of cryptocurrencies in its strategic reserves after US President Donald Trump announced the establishment of a strategic bitcoin reserve and digital asset stockpile earlier this month. In an answer to a question by Rep. Cha Gyu-geun of the minor Rebuilding Korea Party, the Bank of Korea (BOK) said it “has neither discussed nor reviewed the possible inclusion of bitcoin in foreign exchange reserves and a cautious approach is needed to the matter.”

The BOK cited high volatility in bitcoin prices as a major reason, reports Yonhap news agency. “In the case of cryptocurrency market instability, transaction costs to cash out bitcoins could rise drastically," the central bank said.