South Korea and North Korea have taken markedly different stances on Bitcoin, with South Korea’s central bank reportedly dismissing BTC as part of its foreign exchange reserves.
Reasons Behind South Korea’s Decision
The Bank of Korea (BOK) has articulated that Bitcoin fails to meet the International Monetary Fund’s (IMF) requirements for reserve assets, which prioritize liquidity, stability, and effective credit risk management.
Furthermore, the authorities emphasized the necessity for a conservative approach, pointing out the considerable price volatility of Bitcoin as a major disadvantage.
This is the first instance where South Korea’s central bank has specifically commented on Bitcoin’s potential role in national reserves, reflecting a cautious viewpoint shared by traditional financial entities on cryptocurrencies, even as global conversations about digital assets are advancing.
In contrast to this stance, recent actions in the United States have drawn attention.
President Donald Trump’s executive order to create a strategic Bitcoin reserve has sparked heightened discussions regarding the integration of digital currencies into national financial policies.
North Korea’s Accumulation of Bitcoin
As South Korea approaches Bitcoin with caution, North Korea has emerged as one of the largest state-endorsed holders of the cryptocurrency.
The nation’s Bitcoin reserves have outstripped those of Bhutan and El Salvador, both of which have actively integrated Bitcoin into their financial frameworks.
Data indicates that North Korea possesses 13,518 BTC, valued at around $1.13 billion, which exceeds Bhutan’s holding of 10,635 BTC and El Salvador’s 6,118 BTC.
In contrast to these countries, which obtained BTC through mining or official purchases, North Korea’s accumulation is closely associated with the illicit activities of the Lazarus Group and is being utilized to finance its weapons program.
The Lazarus Group, a hacking organization supported by the state, has been instrumental in this accumulation and is linked to several well-known breaches of cryptocurrency exchanges, including attacks on DMM Bitcoin and Bybit.
These cyber operations have enabled North Korea to gather substantial Bitcoin reserves despite facing worldwide sanctions and economic limitations.
