Bank of Korea rejects Bitcoin for foreign exchange reserves

The Bank of Korea (BOK) has ruled out including bitcoin in its foreign exchange reserves due to its price volatility. Officials stated that a cautious approach is necessary, as cryptocurrencies do not meet International Monetary Fund criteria for reserves. Discussions about including cryptocurrencies in reserves arose after U.S. President Donald Trump announced a strategic bitcoin reserve. However, the BOK confirmed it has not reviewed this possibility. The BOK also noted ongoing uncertainties regarding inflation, driven by geopolitical tensions and trade conflicts. Consumer prices in South Korea rose by 2 percent in February, down from 2.2 percent in January.