Bank of Korea Dismisses Bitcoin as FX Reserve, Citing Volatility
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The Bank of Korea has dismissed the idea of adding Bitcoin to its foreign exchange reserves due to concerns over its extreme price volatility and liquidity risks.
March 18, 2025 | 11:30 am
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The Bank of Korea has decided against using Bitcoin as part of its foreign exchange reserves, highlighting concerns over Bitcoin's price volatility and liquidity risks.
The decision by a major central bank like the Bank of Korea to dismiss Bitcoin as a reserve asset due to volatility and liquidity concerns could negatively impact Bitcoin's perception as a stable asset, potentially leading to short-term price declines.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80