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Unlike ongoing discussions in South Korea’s political sphere, the Bank of Korea (BoK) remains cautious regarding Bitcoin’s inclusion in the country’s foreign exchange reserves. On March 16, the central bank officially clarified in a written response to the National Assembly’s Strategy and Finance Committee that no discussions or reviews have been conducted due to Bitcoin’s high price volatility and the sharp increase in transaction costs.

Bitcoin has demonstrated extreme price swings, surging to ₩160 million in January before plunging to ₩110 million recently. The BoK cited Bitcoin’s unsuitability for securing immediate liquidity during crises, which is a key function of foreign reserves. Additionally, Bitcoin fails to meet the International Monetary Fund (IMF) standards for foreign reserves, which require high liquidity, marketability, and convertibility into traditional currencies during emergencies.

Globally, countries like Czech Republic and Brazil have shown a positive stance toward Bitcoin, whereas major financial institutions, including the European Central Bank (ECB), Swiss National Bank (SNB), and the Japanese government, remain skeptical. U.S. President Donald Trump’s executive order on Bitcoin reserves only applies to Bitcoin seized through civil and criminal asset forfeitures, with no immediate plans for additional government purchases.

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