Key Takeaways
- Taiwan is weighing a pilot bitcoin reserve using seized BTC.
- Lawmakers say outdated policies heighten U.S./China risk.
- A full reserve review and BTC inventory are due this year.
Taiwan is taking real steps toward studying whether bitcoin should be added to the country’s national reserves. The government is responding to rising concerns that Taiwan relies too heavily on U.S. dollar assets at a time when global financial conditions are becoming more uncertain.
One of the strongest voices in this debate is legislator Ko Ju-Chun. He says Taiwan needs to update its thinking about digital assets. “Virtual assets are no longer just speculative commodities, but a new battleground for national security and financial sovereignty,” he said in a recent government meeting.
This initiative is also backed by Samson Mow, CEO of JAN3, a Bitcoin company focused on accelerating national-level adoption.
Ko argues that Taiwan shouldn’t wait until 2030 to consider Bitcoin, asking, “Given the global changes, can Taiwan wait until 2030?”
Another lawmaker, Ge Rujun, agrees. He says the government is using old ideas about digital assets that no longer match how the world works today.
According to Ge, Bitcoin has grown into a mature global asset, and it could help Taiwan reduce risks that come from depending too much on the U.S. or China.
Ge warned that Taiwan’s current reserve composition leaves it vulnerable to “U.S. fiscal insecurity and Chinese economic volatility.” He also says Taiwan needs to know exactly how much seized bitcoin it currently holds before making any decisions.
Because of this pressure, the government is now taking action. Premier Cho Jung-tai has promised that the government will publish an updated study on bitcoin reserves before the end of the year.
He also confirmed that officials will complete a full inventory of all seized bitcoin by year-end. That inventory will help decide whether some of the seized bitcoin could be used in a pilot reserve program instead of being sold at auction.
Taiwan’s central bank has also agreed to study Bitcoin as a strategic reserve asset. The first step would be a pilot program using bitcoin that is “awaiting auction.” If this happens, Taiwan would become one of the first Asian countries to add bitcoin to its official reserves.
Related: Czech National Bank Practices Adding Bitcoin to Reserves
These discussions come as Taiwan’s currency, the New Taiwan Dollar, has seen a lot of volatility recently. The central bank had to spend over $10 billion to stabilize the currency earlier this year. This has made many leaders more worried about Taiwan’s current reserve strategy.
The idea of reducing dependence on the U.S. dollar has support from multiple political leaders. Former Premier Chen Chong has criticized the central bank for not diversifying sooner.
He points out that major countries like France and Germany hold large amounts of gold, while Taiwan puts most of its reserves in U.S. dollars and Treasuries. He believes this creates unnecessary risk.
Opposition leader Eric Chu also questioned how much U.S. debt Taiwan will be able to redeem in the future, saying the current approach may not be sustainable.
Around the world, many central banks are also rethinking their reserve strategies. In a recent survey of 75 central bank managers, 60% said they plan to diversify their portfolios in the next two years. Meanwhile, 73% expect the share of U.S. dollars in global reserves to fall.
Countries such as the United States, Argentina, and El Salvador are already exploring or adopting Bitcoin in different ways, adding to the global shift.
