The Bank of Korea (BOK) has officially announced that Bitcoin does not meet the criteria for inclusion in its foreign exchange reserves. The central bank cited significant price volatility and liquidity concerns as primary reasons for this decision, emphasizing that such instability could lead to increased transaction costs when converting Bitcoin to cash, thereby posing substantial risks to the nation's reserves.
Additionally, the BOK highlighted that Bitcoin fails to satisfy the International Monetary Fund's (IMF) standards for foreign exchange reserves. The IMF requires reserve assets to be liquid, marketable, and possess investment-grade credit ratings—criteria that Bitcoin does not fulfill due to its erratic nature.
This clarification comes amid discussions within South Korea regarding the potential inclusion of Bitcoin in national reserves. Financial experts and industry leaders have suggested exploring this avenue, especially following similar considerations by other countries. However, the BOK's recent statement underscores a cautious approach, prioritizing the stability and security of the nation's foreign exchange reserves.
As of today, Bitcoin (BTC) is trading at $83,346.00, reflecting a 0.79% increase from the previous close. The intraday high reached $84,692.00, while the low was $82,019.00.
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