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South Korea’s central bank rejects adding Bitcoin to its $410 billion foreign reserve stockpile. The Bank of Korea (BOK) called the cryptocurrency too risky due to its extreme price swings.
Meanwhile, North Korea quietly builds a massive Bitcoin stash through cyberattacks linked to its weapons program.
The BOK responded to Democratic Party lawmaker Cha Gyu-geun’s inquiry about adopting Bitcoin reserves, similar to the U.S. strategy. BOK says it “has neither discussed nor reviewed the possible inclusion of bitcoin in foreign exchange reserves,” Yonhap reported.
The BOK warns that Bitcoin’s volatility could destabilize the country’s reserves. For example, Bitcoin’s price dropped from $109,000 to $76,700 in recent weeks.
“In the case of cryptocurrency market instability, transaction costs to cash out bitcoins could rise drastically,” the BOK stated. “A cautious approach is needed.”
The bank also stressed that Bitcoin does not meet International Monetary Fund (IMF) rules for reserves. These rules require assets to be stable, liquid, and creditworthy.
Meanwhile, North Korea has reportedly gathered significant Bitcoin holdings through cybercrime. Arkham Intelligence data shows North Korean hackers, mainly the Lazarus Group, have collected about 13,518 BTC worth $1.13 billion, more than the official holdings of countries like El Salvador.
The Lazarus Group has been linked to major breaches, including February’s $1.46 billion Bybit heist—the largest crypto theft ever, per FBI reports. These funds are reportedly used to support the country’s missile programs.
South Korea’s decision shows a growing split between countries on cryptocurrency’s role in national finances. While the US government recently created a Bitcoin stockpile using assets seized from criminals, other major financial powers remain doubtful.
“It is known that some countries, such as the Czech Republic and Brazil, have expressed positive opinions,” the BOK stated. “But the European Central Bank (ECB), the Swiss National Bank, and the Japanese government have expressed negative opinions.”
At the same time, South Korea is easing other crypto regulations. The country is allowing institutions to trade digital assets and drafting laws for stablecoins.
The split between the Koreas highlights Bitcoin’s dual role. For South Korea, it is a rejected liability for traditional finance. For North Korea, it is a tool to reshape geopolitical power—even without official approval.
