The Bank of Korea is adopting a cautious approach towards potentially adding Bitcoin to its foreign exchange reserves, citing concerns over the cryptocurrency’s high volatility. In response to a query from Representative Cha Gyu-geun of the National Assembly’s Planning and Finance Committee, officials stated that they have neither discussed nor reviewed the inclusion of Bitcoin in reserves, emphasizing the need for a careful approach. The central bank highlighted the extreme price fluctuations of Bitcoin, noting the potential risks of instability in the cryptocurrency market. Recent data shows Bitcoin’s prices fluctuating between $98,000 and $76,000 in the past 30 days, settling at around $83,000 presently. This decision comes amidst global discussions on the role of crypto assets in national financial strategies, sparked by US President Donald Trump’s executive order establishing a strategic Bitcoin reserve and digital asset stockpile. While there are calls within Korea to integrate Bitcoin into national reserves and develop a won-backed stablecoin, the Bank of Korea maintains that reserves must meet liquidity and credit rating criteria, which Bitcoin currently does not fulfill. Experts from academic institutions in Korea also weighed in on the issue, with opinions varying on the future recognition of stablecoins as foreign exchange reserves by organizations like the IMF. The country’s financial regulator is closely monitoring Japan’s legislative stance on crypto assets as it considers lifting a ban on crypto exchange-traded funds.