South Korea’s central bank, Bank of Korea (BOK), has taken a cautious attitude to include Bitcoin in its currency reserves per year. Korea financial daily report.

In response to a question asked by a member of the National Assembly’s Strategy and Finance Committee, Bok made it clear on Sunday that it has not entertained the notion of embracing BTC.

The primary deterrent to BOK is Bitcoin’s notorious price instability, where the central bank fears that the wild oscillations in the crypto market could significantly inflate transaction costs when Bitcoin converts to cash, which pose a significant risk to its reserves.

BOK also pointed out that Bitcoin does not meet the International Monetary Funds (IMF) currency reserve management standards. The IMF emphasizes the importance of cautious management of liquidity, market and credit risks – criteria that Bitcoin with its erratic nature does not satisfy.

South Korea enjoys a flowering crypto -ecosystem with local startups, tokens, exchanges and businesses contributing billions of dollars in daily trading volumes within a relatively insular crypto market.

BTC trades over $ 83,400 in Asian afternoon hours, down 1% over the last 24 hours.