Korea says it is taking a “cautious approach” that may include bitcoin as foreign currency reserves.
On March 16, the Central Bank officials said that they had not discussed a Bitcoin potential reserve (BTCOIN), citing high fluctuations.
In response to a question from the actor Chau Ton from the Planning and Finance Committee in the National Assembly, Central Banking said they “did not discuss and did not review the potential inclusion of Bitcoin currencies in foreign currency reserves, adding that” a cautious approach is needed. ” According to To Korea Herald.
The central bank indicated that “in the event of instability in the cryptocurrency market,” in the event of instability in the cryptocurrency market, the costs of transactions to manufacture bitcoin currencies may significantly increase. “
Over the past thirty days, Bitcoin has dramatically swinging between $ 98,000 and $ 76,000 before settling at the current levels of about $ 83,000 in a decrease of 15 % since February 16, According to To Coingecko.
The decision comes amid increasing global discussions on the role of encryption assets in national financial strategies, which was raised by US President Donald Trump earlier this month, as it was established with the strategic bitcoin reserves and the inventory of digital assets.
At a symposium on March 6, pressure groups in the encryption industry, and some members of the Korean Democratic Party urged the country to integrate Bitcoin into its national reserves and develop Stablecoin supported by winning.
However, Korea Bank stressed that foreign work reserves must have liquidity and be useable immediately when needed, as well as a credit classification of the degree of investment or higher, criteria that do not meet bitcoin, in its opinion.
Professor Yang John-Sock of the Catholic University in Korea, saying, “It is appropriate for foreign currencies to be held in proportion to the currencies of the countries we are traveling in.”
Professor Kang Tae Soo of the College of Graduate Studies in Kest commented that the United States is likely to benefit from Stablecoins instead of BTC to maintain the domination of the dollar before it adds, “Whether the position of the International Monetary Fund will learn Stablecoins because future foreign reserves are important.”
Related to: The Democratic legislator urges the Treasury to stop Bitcoin backup plans in Trump
Earlier this month, South Korea's financial organizer studied the legislative trend of the Japanese Financial Services Agency towards encryption assets because it raises a ban on the money circulating in the exchange of encryption in the country.
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