- The Bank of Korea rejects Bitcoin reserves, with reference to high volatility and transaction costs.
- Worldwide sentiment on Bitcoin reserves remains divided, with large economies that are careful.
In the midst of the growing discussion about a strategic bitcoin [BTC] Reserve in the United States, fueled by the approval of President Donald Trump, have also started evaluating the idea.
Although some American states have embraced the initiative, others have rejected it firmly.
South Korea stops Bitcoin Reserve
On March 16, the Bank of Korea (Bok) clarified its position on Bitcoin in foreign exchange reserves. The Central Bank stated that it has “not discussed or assessed the inclusion of Bitcoin in such reserves”.
This answer came after a written investigation by representative Cha Gyu-Geun from the National Assembly. The Bank of Korea emphasized the extreme volatility of Bitcoin as the main reason for its reluctance.
The price volatility of Bitcoin is very high, “the central bank It should be noted, before he adds that “in the case of cryptocurrency storage instability, the transaction costs to redeem Bitcoins, could rise drastically.”
The goat further emphasized that ‘a cautious approach is needed’, which strengthens its position that the price fluctuations of the cryptocurrency make it unsuitable for reserve companies.
In addition to the discussion, a spokesperson for the central bank said, said
“If the market for virtual assets becomes unstable, there is a concern that transaction costs will quickly rise in the process of converting Bitcoin into cash.”
This coincided with The recent price promotion of Bitcoin, where the cryptocurrency struggled to get the momentum back after previously surpassed from the $ 100,000.
At the time of the press, BTC found it difficult to break beyond $ 90,000, according to $ 83,414.13 after a dip of 0.43% in the last 24 hours, according to Mint market cap.
Other countries that have followed the Pak of South Korea
Despite the growing interest in Bitcoin reserves, the global sentiment remains divided, with important economies that are careful.
The hesitation of South Korea reflects that from Japan, where Prime Minister Shigeru Ishiba rather expressed concern about the lack of transparency around the Bitcoin strategies of the US and other nations.
This skepticism was further enhanced by Switzerland and the European Central Bank, both of which have taken a cautious attitude.
Polymarket -Trend on US Bitcoin Reserve
Meanwhile MArket’s confidence in the Bitcoin Reserve initiative of Trump remains lukewarm. Polymarket facts Only a 29% chance shows that Trump creates a Bitcoin reserve within 100 days.
This reflects doubts despite its executive order on March 6 to set up a strategic Bitcoin reserve. The reserve would use BTC seized from criminal and civil procedures.
While nations are debating about the role of Bitcoin in financial systems, uncertainty continues to influence global crypto acceptance.
