- The Bank of Korea scoffs at Bitcoin reserves, citing volatility and transaction costs as if they were hosting a financial soap opera.
- Global sentiment on Bitcoin reserves is as divided as a family arguing over who gets the last slice of pizza.
Amid the growing chatter about a Strategic Bitcoin [BTC] Reserve in the United States, fueled by President Donald Trump’s endorsement, several other nations have also begun to ponder the idea. While some U.S. states have embraced the initiative, others have rejected it with the enthusiasm of a cat avoiding a bath.
South Korea Puts the Brakes on Bitcoin Reserve
On the 16th of March, the Bank of Korea (BOK) made its stance on Bitcoin in foreign exchange reserves crystal clear. The central bank stated that it has “neither discussed nor reviewed” Bitcoin’s inclusion in such reserves, as if the mere thought was too scandalous to entertain.
This response came after a written inquiry by Representative Cha Gyu-geun of the National Assembly. The Bank of Korea highlighted Bitcoin’s extreme volatility as the main reason for its reluctance, likening it to a rollercoaster ride without a safety harness.
“Bitcoin’s price volatility is very high,” the central bank noted, before adding that “in the case of cryptocurrency market instability, transaction costs to cash out Bitcoins could rise drastically.”
The BOK further emphasized that “a cautious approach is needed,” reinforcing its position that the cryptocurrency’s price fluctuations make it as suitable for reserve holdings as a chocolate teapot.
“If the virtual asset market becomes unstable, there is a concern that transaction costs will increase rapidly in the process of converting Bitcoin into cash,” a spokesperson for the central bank said, with the gravitas of someone announcing the end of the world.
This coincided with Bitcoin’s recent price action, where the cryptocurrency was struggling to regain momentum after previously surpassing the $100,000 mark. At press time, BTC was finding it difficult to break past $90,000, trading at $83,414.13 following a 0.43% dip in the past 24 hours, according to CoinMarketCap.
Other Countries Following South Korea’s Lead
However, despite growing interest in Bitcoin reserves, global sentiment remains as divided as a jury in a courtroom drama. South Korea’s hesitancy mirrors that of Japan, where Prime Minister Shigeru Ishiba previously expressed concerns over the lack of transparency surrounding the U.S. and other nations’ Bitcoin reserve strategies.
This skepticism was further reinforced by Switzerland and the European Central Bank, both of which have taken a cautious stance, as if Bitcoin were a suspicious character in a detective novel.
Polymarket Trend on U.S. Bitcoin Reserve
Meanwhile, market confidence in Trump’s Bitcoin reserve initiative remains as lukewarm as a cup of tea left out too long. Polymarket data shows only a 29% chance of Trump creating a Bitcoin reserve within 100 days.
This reflects doubts despite his executive order on the 6th of March to establish a Strategic Bitcoin Reserve. The reserve would use BTC seized from criminal and civil proceedings, as if Bitcoin were a treasure chest from a pirate movie.
Thus, as nations debate Bitcoin’s role in financial systems, uncertainty continues to influence global crypto adoption, leaving everyone wondering if Bitcoin will ever be more than a digital enigma.
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2025-03-18 00:08