South Korea to Bitcoin: “Not Today, Satan!”

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Story Highlights

  • Officials rejected Bitcoin as a foreign reserve, citing its volatility and liquidity issues—because who needs financial stability, right?
  • The political push for crypto reserves continues, but the Bank of Korea remains as unmoved as a statue in a hurricane.
  • The global split deepens: the U.S. embraces Bitcoin while others side-eye it like a suspicious casserole at a potluck.

The Bank of Korea (BOK) has, with the solemnity of a judge sentencing a jaywalker, officially excluded Bitcoin (BTC) as a foreign exchange reserve asset. The reason? Its volatility and liquidity issues make it about as reliable as a weather forecast in April. As the world debates digital asset reserves, the U.S. and others flirt with Bitcoin, while South Korea clutches its pearls and says, “Not in my backyard.”

When lawmaker Cha Gyu-geum dared to ask about Bitcoin reserves, the BOK responded with the bureaucratic equivalent of a polite but firm “no.” The central bank pointed out that Bitcoin’s price swings make it as stable as a Jenga tower in an earthquake. They also invoked IMF guidelines, which require reserve assets to be liquid, stable, and creditworthy—qualities Bitcoin lacks like a cat lacks loyalty.

South Korea Keeps Hands Off Bitcoin Reserves

While some South Korean politicians, particularly from the Democratic Party, have championed Bitcoin reserves like it’s the next big thing since kimchi, the BOK remains steadfast. Crypto enthusiasts have even proposed stablecoin-backed reserves, but the central bank insists that reserves must be instantly available for financial stability—because apparently, Bitcoin doesn’t do “instant.”

Professor Yang Jun-seok of the Catholic University of Korea echoed the BOK’s stance, noting that Bitcoin’s value as a reserve is limited unless large economies issue Bitcoin-denominated bonds. In other words, Bitcoin’s chances are about as good as a snowball’s in July.

Internationally, South Korea’s cautious approach aligns with other skeptics like the European Central Bank, the Swiss National Bank, and Japan. Meanwhile, the U.S., under Donald Trump, flirted with Bitcoin reserves like a teenager with a crush. Brazil and the Czech Republic are also considering Bitcoin, highlighting the growing divide in global economic policies.

Professor Kang Tae-soo of KAIST Graduate School of Finance suggested that stablecoins might be a more practical alternative. He speculated that the U.S. would likely favor stablecoins to maintain its dollar dominance. The IMF’s future stance on stablecoins could reshape global financial strategies—or at least give everyone something new to argue about.

In contrast to the global trend, South Korea is adopting a cautious, wait-and-see approach. While Bitcoin’s price has fluctuated wildly, the BOK remains unconvinced of its stability. At the time of writing, BTC has risen 0.16% in the last 24 hours, now sitting at $83,372—a figure that’s about as reassuring as a “sale” sign in a luxury store.

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2025-03-17 19:28