The Bank of Korea has decided to take a cautious approach regarding the possible inclusion of Bitcoin in its foreign exchange reserves, a local publication has reported.
On March 16, Korean central bank officials responded to a query, stressing they have not considered Bitcoin reserves due to its high volatility.
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In response to Deputy Cha Gyu-geun of the National Assembly's Planning and Finance Committee, central bankers stated that they have "neither discussed nor reviewed" the addition of Bitcoin to foreign exchange reserves.
The bank pointed to the significant volatility of Bitcoin prices and noted that instability in the cryptocurrency market could lead to a sharp increase in transaction costs to cash Bitcoin.