South Korea and North Korea have taken contrasting positions on the issue of Bitcoin, with South Korea’s central bank ruling out BTC as part of its foreign exchange reserves. The Bank of Korea stated that Bitcoin does not meet the International Monetary Fund’s criteria for reserve assets, emphasizing liquidity, stability, and credit risk management. Additionally, authorities cited the need for a cautious approach due to Bitcoin’s price fluctuations.
This decision by South Korea’s central bank marks the first time it has explicitly addressed Bitcoin’s role in national reserves. The stance taken aligns with traditional financial institutions’ cautious approach towards cryptocurrencies, despite ongoing global discussions on digital assets.
In contrast to South Korea’s position, recent moves by the United States, including President Donald Trump’s executive order to establish a strategic Bitcoin reserve, have sparked discussions about the role of digital currencies in national financial strategies.
On the other hand, North Korea has emerged as one of the largest state-backed holders of Bitcoin, surpassing nations like Bhutan and El Salvador in terms of BTC reserves. Data from Bitcoin Treasuries shows that North Korea holds 13,518 BTC, valued at approximately $1.13 billion, exceeding Bhutan’s 10,635 BTC and El Salvador’s 6,118 BTC.
Unlike Bhutan and El Salvador, which acquired BTC through mining or official purchases, North Korea’s accumulation of Bitcoin is connected to cybercriminal activities, specifically the Lazarus Group. This state-backed hacking organization has been tied to various high-profile crypto exchange breaches, including attacks on platforms like DMM Bitcoin and Bybit. Despite international sanctions and economic restrictions, these cyber operations have enabled North Korea to amass significant BTC reserves.
Overall, the contrasting stances of South Korea and North Korea on the issue of Bitcoin reflect the complex dynamics surrounding digital currencies in the global financial landscape. While South Korea remains cautious due to regulatory concerns and price volatility, North Korea’s use of Bitcoin to circumvent sanctions highlights the challenges posed by illicit activities in the cryptocurrency space. As discussions on the role of digital assets continue to evolve, it is evident that different countries are adopting varying approaches towards integrating Bitcoin into their national financial strategies.