South Korea and North Korea have taken sharply contrasting positions on Bitcoin as South Korea’s central financial institution has reportedly dominated out BTC as a part of its overseas alternate reserves.
Why South Korea dismissed BTC
In response to the report, the Financial institution of Korea (BOK) said that Bitcoin doesn’t meet the Worldwide Financial Fund’s (IMF) standards for reserve belongings, which emphasize liquidity, stability, and credit score danger administration.
In addition to that, the authorities famous the necessity for a cautious method, highlighting Bitcoin’s worth fluctuations as a major disadvantage.
This marks the primary time South Korea’s central financial institution has explicitly addressed Bitcoin’s position in nationwide reserves. Its resolution aligns with conventional monetary establishments’ cautious stance on cryptocurrencies, at the same time as world discussions on digital belongings proceed to evolve.
In the meantime, South Korea’s rejection of Bitcoin as a reserve asset additionally contrasts with current strikes by the US.
President Donald Trump’s govt order to determine a strategic Bitcoin reserve has intensified discussions concerning the position of digital currencies in nationwide monetary methods.
North Korea amasses Bitcoin
Whereas South Korea stays cautious of Bitcoin, North Korea has change into one of many largest state-backed holders of the asset.
The nation’s BTC reserves have surpassed these of Bhutan and El Salvador, two nations which have actively integrated Bitcoin into their monetary methods.
Information from Bitcoin Treasuries signifies North Korea holds 13,518 BTC, valued at roughly $1.13 billion. This locations its holdings above Bhutan’s 10,635 BTC and El Salvador’s 6,118 BTC.
Not like these nations, which acquired BTC by way of mining or official purchases, North Korea’s accumulation is tied to the cybercriminal actions of Lazarus Group and is getting used to fund the nation’s weapons program.
The Lazarus Group, a state-backed hacking group, has performed a key position on this buildup. The syndicate has been linked to a number of high-profile crypto alternate breaches, together with assaults on DMM Bitcoin and Bybit.
These cyber operations have allowed North Korea to amass vital BTC reserves regardless of worldwide sanctions and financial restrictions.
