BOK rules out inclusion of bitcoin in foreign exchange reserves
The South Korean central bank has called for a "cautious approach" to an idea of including bitcoin as foreign exchange reserves given its price volatility, officials said Sunday.
There have been discussions among lawmakers about the possible inclusion of cryptocurrencies in its strategic reserves after US President Donald Trump announced the establishment of a strategic bitcoin reserve and digital asset stockpile earlier this month.
In an answer to a question by Rep. Cha Gyu-geun of the minor Rebuilding Korea Party, the Bank of Korea said it "has neither discussed nor reviewed the possible inclusion of bitcoin in foreign exchange reserves" and "a cautious approach is needed" to the matter.
The BOK cited high volatility in bitcoin prices as a major reason.
"In the case of cryptocurrency market instability, transaction costs to cash out bitcoins could rise drastically," the central bank said.
Cryptocurrencies also do not meet the criteria for foreign exchange reserves set by the International Monetary Fund, such as liquidity, market value and credit rating, it added. (Yonhap)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
13 hours ago
- Korea Herald
President Lee to post social media messages in both Korean, foreign languages to 'show respect'
President Lee Jae Myung will post diplomatic messages on social media in both Korean and the language of his counterpart, his office said Saturday. Before traveling to Canada for the Group of Seven summit in Canada earlier this week, Lee had ordered his staff to write social media posts in both Korean and foreign languages to "show our diplomatic respect and willingness to communicate," according to the office. Lee had also told his staff that his messages must reach South Korean residents living abroad and local citizens of those counterpart countries, his office said. On Lee's X page, an update on his summit with Japanese Prime Minister Shigeru Ishiba was written in both Korean and Japanese on Wednesday. On the same day, an X post detailing Lee's meeting with Canadian Prime Minister Mark Carney was uploaded in Korean and English. And a summary of Lee's talks with Mexican President Claudia Sheinbaum was provided in Korean and Spanish. The presidential office said Lee's social media posts will continue to be provided in multiple languages when detailing his overseas trips and meetings with other heads of state. "This will not be a temporary measure for only certain countries. It's part of the president's digital diplomatic strategy based on his philosophy on government administration," it said. "We hope his social media messages will help create a bond between peoples of different countries and serve as the starting point of diplomacy based on mutual respect." (Yonhap)
Korea Herald
18 hours ago
- Korea Herald
S. Korean, US diplomats agree on efforts for bilateral alliance, trilateral cooperation with Japan
Senior diplomats of South Korea and the United States agreed Friday to work together to strengthen their countries' alliance and trilateral cooperation with Japan during their talks in Washington, according to the South Korean Embassy in the US capital. South Korean Ambassador to the US Cho Hyun-dong met with new Under Secretary of State for Political Affairs Allison Hooker at the State Department to discuss the bilateral alliance and a range of regional and global issues, the embassy said. Confirmed by the Senate earlier this month, Hooker is noted for her longtime experience in diplomacy with North Korea, including preparations for US President Donald Trump's summits with North Korean leader Kim Jong-un during his first term. "Sharing the understanding on the importance of close cooperation between South Korea and the US over North Korean issues, and of comprehensive bilateral cooperation, the two sides agreed to continue efforts to strengthen the Seoul-Washington alliance and enhance trilateral cooperation with Japan," the embassy wrote on Facebook. Cho described Hooker as a longtime expert on issues related to the Korean Peninsula and the alliance. "(Cho) asked Under Secretary Hooker -- a longtime friend of South Korea and strong backer of the South Korea-US alliance -- to continue to support efforts for the development of bilateral relations," it said The two sides agreed to closely cooperate to respond effectively to an array of global challenges, as they discussed the Israel-Iran conflict and Ukrainian issues, as well as challenges in the Indo-Pacific. Hooker previously served as senior director for Asian affairs at the National Security Council. She was deeply involved in preparations for Trump's summits with Kim in Singapore in June 2018, Hanoi in February 2019 and the inter-Korean border village of Panmunjom in June 2019. From 2001-2014, Hooker served as a senior analyst for North Korea in the Department of State's Bureau of Intelligence and Research. She was also selected as the 2013-2014 Council on Foreign Relations International Affairs fellow in South Korea. (Yonhap)
Korea Herald
18 hours ago
- Korea Herald
Trump repeats NATO members should spend 5% of GDP on defense
US President Donald Trump reiterated Friday that North Atlantic Treaty Organization member states should spend 5 percent of gross domestic product on defense, while saying the United States should not. Trump made the remarks during a press availability as he is preparing to attend a NATO summit in The Hague, the Netherlands, next week, where the defense spending target is expected to figure prominently. "I don't think we should, but I think they should," he said, responding to a question about the defense spending target that he proposed. "We've been supporting NATO so long. In many cases, I believe ... almost paying 100 percent of the cost. So I don't think we should, but I think that the NATO countries should absolutely," he added. The US spent about 3.4 percent of its GDP on defense last year. Asked about Spain's stance against the target, Trump said that NATO will have to deal with the country. "Spain has been a very low payer," he said. "They were either good negotiators or they weren't doing the right thing. I mean I think Spain has to pay what everybody else has to pay. Spain has been notorious for low pay." Spain has reportedly rejected the defense spending proposal, calling for a more "flexible" approach. On Thursday, the Pentagon said that European allies are setting the "global standard" for Asian allies, which is spending 5 percent of GDP on defense. South Korea's defense budget this year stands at around 61.2 trillion won ($44.6 billion), which is about 2.32 percent of its GDP, according to Seoul's defense ministry. (Yonhap)
