It looks like Donald Trump’s Strategic Bitcoin Reserve is starting to make waves on the global financial stage. In South Korea, the central bank has officially responded to lawmakers and lobbyists advocating for a national Bitcoin reserve. Interestingly, the bank did not entirely dismiss the idea, leaving the door open for a potential future Bitcoin reserve.
A South Korean Bitcoin Reserve? Not Just Yet.
The Bank of Korea (BoK) has stated that it is taking a “cautious approach” when considering Bitcoin as part of its foreign currency reserves.
Officials from the central bank emphasized that they have not yet seriously explored the issue, citing Bitcoin’s extreme volatility as a major concern. And let’s be real—they have a point. Unlike gold, Bitcoin’s price swings are still far more dramatic, making it a risky asset for a country’s emergency reserve fund.
In response to an inquiry from Cha Gyu-geun, a member of South Korea’s Parliamentary Committee on Planning and Finance, the central bank clarified that Bitcoin has not yet been actively discussed as a reserve asset and that a “cautious approach” is necessary.
“Bitcoin is highly volatile,” noted the Bank of Korea, adding that liquidating Bitcoin in a crisis could be expensive. It’s unclear whether they are referring to potentially rising transaction fees or the risk of Bitcoin crashing at critical moments.
The Problem with Bitcoin as a Reserve Asset
Foreign exchange reserves are meant to be a financial safety net in times of crisis. When things go south, a country needs to rely on its reserves without worrying about massive price fluctuations. In that regard, it makes sense that central banks are still hesitant to embrace Bitcoin.
While Bitcoin has been marketed as “digital gold,” it hasn’t yet reached the same level of stability or trust among governments. A quick look at the gold market in 2025 shows why the Bank of Korea is still skeptical.
Gold prices have surged over 13% this year, while most other financial assets have struggled. Historically, gold has been the go-to safe haven during economic uncertainty. Bitcoin? Not so much.
At this stage, investing in Bitcoin is more speculation than a proven strategy for central banks. Sure, there’s a strong argument that Bitcoin will play a major role in the future financial system, but we’re not there yet.
Bitcoin’s Future as a Reserve Asset – A Matter of Time?
It’s been 15 years since Bitcoin was created, and while its adoption has grown significantly, expecting central banks to immediately trust it as a reserve asset is perhaps too optimistic. But here’s the key takeaway: The fact that South Korea’s central bank is even considering it is a massive shift in itself.
With the U.S. moving toward a strategic Bitcoin reserve, other nations may soon follow suit. It’s no longer a question of IF central banks will hold Bitcoin—but WHEN.
