Why South Korea Rejected a Bitcoin Reserve

By Ouinex

Despite growing pressure from the country's Democratic Party, South Korea has firmly rejected the idea of adding Bitcoin to its national reserves.

The proposal, which sought to push the Bank of Korea into exploring Bitcoin as a strategic asset, was ultimately dismissed, with policymakers citing concerns over volatility, security risks, and global regulatory uncertainty.

Proponents of the idea had argued that South Korea, a major hub for crypto trading, could benefit from holding digital assets as part of its reserve strategy, potentially mirroring moves by El Salvador. However, officials remain sceptical about integrating crypto into the nation’s monetary system.

“Bitcoin remains highly speculative,” said a central bank official. “It is not yet suitable as a reserve asset given the risks involved.”

With other nations cautiously experimenting with Bitcoin adoption, South Korea’s rejection underscores the lingering hesitation among traditional financial institutions to fully embrace digital currencies.