The Central Bank of South Korea, the Bank of Korea (BOK), has adopted a cautious posture by including Bitcoin in its foreign exchange reserves, according to a daily economic report by Korea.
In response to a question raised by a member of the Strategy and Finance Committee of the National Assembly, the Bok made clear on Sunday that he has not entertained the notion of embrace BTC.
The main deterrence element for the BOK is the notorious instability of the prices of Bitcoin, where the Central Bank fears that wild changes in the cryptographic market can substantially inflate transaction costs by converting bitcoin into cash, which represents a significant risk for its reserves.
The BOK also pointed out that Bitcoin does not comply with the management standards of the currency reserve of the International Monetary Fund (IMF). The IMF emphasizes the importance of prudently managing liquidity, market and credit risks, criteria that Bitcoin, with its erratic nature, does not satisfy.
South Korea enjoys a flouring cryptographic ecosystem, with new local companies, chips, exchanges and companies that contribute thousands of dollars in daily negotiation volumes within a relatively insular cryptographic market.
BTC quotes more than $ 83,400 in the Asian afternoon, 1% less in the last 24 hours.
