The Central Bank of South Korea, the Bank of Korea (BOK), has adopted a cautious position on the inclusion of Bitcoin in its exchange reserves, according to a economic report in Korea.
In response to a question posed by a member of the Strategy and Financing Committee of the National Assembly, the BOK clearly indicated on Sunday that it had not entertain the concept of adopting the BTC.
The main means of deterrent for BOK is the notorious instability of Bitcoin prices, where the central bank fears that wild oscillations on the cryptography market will considerably swell the transaction costs when converting bitcoin into cash, pose a significant risk for its reserves.
The BOK also stressed that Bitcoin does not meet the management standards of exchange reserves of the International Monetary Fund (IMF). The IMF highlights the importance of cautiously managing the risks of liquidity, market and credit – the criteria that Bitcoin, with its erratic nature, does not meet.
South Korea has a flourishing cryptography ecosystem, with local startups, tokens, exchanges and companies contributing to billions of dollars in daily negotiation volumes in a relatively insular cryptographic market.
The BTC is exchanged more than $ 83,400 in Asian afternoon, down 1% in the last 24 hours.
