#Elmundoencontexto South Korea avoids bitcoin for its reserves, citing volatilityThe Bank of Korea rejects Bitcoin as a foreign reserve due to price volatility and associated financial risks.

Experts suggest that South Korea explore a stablecoin based on the won to bridge traditional finance and digital assets.

The Bank of Korea (BOK) has not considered including Bitcoin (BTC) in its foreign exchange reserves. The high price volatility and the possibility that this stance could disrupt the financial stability of the nation are the basis for this.

However, some legislators and financial analysts in South Korea have begun to advocate for the nation’s foreign exchange reserves and the Bitcoin dilemma for the BOK.

It is not surprising that the BOK decided not to include Bitcoin in its foreign exchange reserves. Stability is the primary concern of a central bank. Bitcoin is not suitable for foreign exchange reserves, which ideally should be liquid and stable due to its price fluctuations, which can rise or fall within hours.

On the contrary, some might argue that diversifying foreign exchange reserves using digital assets like Bitcoin would be a novel approach. Proponents of this concept argue that, over time, BTC could serve as a hedge against fiat currency decline and provide access to a broader global financial environment.