The Bank of Korea has announced that it will not be considering the inclusion of Bitcoin 
$91,967 in its foreign currency reserves. The bank indicated a cautious stance due to market fluctuations, reflecting broader concerns in the financial community. In the United States, discussions about forming strategic reserves are gaining traction, leading to diverse opinions within the finance world.
South Korea is Not Warm Toward Bitcoin Reserves
Officials from the Bank of Korea clarified that the addition of Bitcoin to reserves is not on the agenda. They emphasized that the volatility and liquidity risks associated with the cryptocurrency market play a crucial role in their reserve policies.
According to the central bank, assets like Bitcoin do not meet the criteria set by the International Monetary Fund (IMF). Thus, there are no current plans to incorporate them among traditional reserve assets. Additionally, political developments in South Korea, such as the removal of the former president, have pushed regulations related to digital assets down the priority list.
The U.S. Administration Continues Strategic Reserve Efforts
The United States is continuing its efforts to establish strategic reserves based on decisions made during President Donald Trump’s administration. Officials are evaluating which assets to include while maintaining budgetary balance.
However, there are public concerns regarding the implementation of this policy. The purpose and long-term effects of the strategic reserves remain topics of debate. Some experts in the financial sector argue that this initiative could lead to significant changes in the markets.
Matt Hougan, the CIO of Bitwise, suggests that the market may be overemphasizing this issue. He believes that such reserve policies could potentially lead to structural changes in the financial system. Nevertheless, given the uncertainties in the markets and the cautious approach of central banks, fundamental changes are anticipated to take time.
Ongoing discussions about reserve policies in countries like the U.S. and South Korea are reevaluating the role of cryptocurrencies in the financial system. Factors like market stability and liquidity will continue to play a decisive role in central banks’ decision-making processes.
