TLDR
- Taiwan’s government is considering Bitcoin as part of its national reserve strategy to reduce reliance on traditional assets.
- The central bank will conduct feasibility studies and pilot programs using seized Bitcoin to explore its role in reserves.
- Legislator Dr. Ju-chun Ko has led efforts to diversify Taiwan’s reserves and reduce vulnerability to inflation and geopolitical risks.
- Taiwan’s current reserves are heavily invested in US Treasury bonds, prompting concerns about overreliance on the US dollar.
- The Financial Supervisory Commission has allowed professional investors to buy Bitcoin and crypto ETFs.
Taiwan is considering integrating Bitcoin into its national reserve strategy. The Executive Yuan and Central Bank have agreed to explore the possibility of Bitcoin as a strategic asset. The move is a step toward reducing reliance on traditional reserve assets like gold and US Treasury bonds.
Taiwan Pushes Bitcoin as Strategic Asset
Taiwan’s government plans to test Bitcoin’s role in its reserves using confiscated BTC. Currently, these Bitcoin holdings await auction after being seized in criminal investigations. The central bank will conduct feasibility studies before expanding the use of Bitcoin in Taiwan’s financial system.
Legislator Dr. Ju-chun Ko has led the push for Bitcoin inclusion, stressing its potential to diversify Taiwan’s financial assets.
“Bitcoin offers a unique hedge due to its decentralized and fixed-supply nature,” Ko stated.
He emphasized the need for Taiwan to protect itself from global economic volatility and inflation.
The initiative has gained support from prominent figures, including Samson Mow, CEO of JAN3. JAN3 has confirmed their backing of the effort, marking a step toward Bitcoin adoption in Asia. The pilot program is expected to be evaluated by Taiwan’s central bank soon.
Taiwan’s reserve strategy heavily relies on US Treasury bonds, with about 92% of its $577 billion in foreign exchange reserves invested in them. This has raised concerns within the country about overreliance on the US dollar. Dr. Ko has voiced concerns over Taiwan’s financial vulnerability due to geopolitical tensions and inflation.
Bitcoin could serve as a complementary asset, not replacing gold or US Treasuries.
“It’s about strengthening Taiwan’s financial resilience,” Dr. Ko explained.
He believes Bitcoin’s decentralized nature can shield the country from foreign economic influence.
The Taiwanese currency, the New Taiwan Dollar, has faced fluctuations up to 5% in a single day. These drastic movements have fueled calls for alternative financial strategies to safeguard against volatility.
Progressive Stance on Digital Assets
Taiwan has been proactive in embracing digital assets. In 2024, the Financial Supervisory Commission (FSC) allowed professional investors to buy Bitcoin and cryptocurrency exchange-traded funds (ETFs). This regulatory move reflects Taiwan’s growing interest in incorporating crypto into its financial infrastructure.
The investigation into Taiwan’s largest crypto fraud case also highlights challenges. In August 2025, authorities indicted 14 individuals involved in a $75 million crypto scam. The fraud involved fake crypto exchange franchises posing as licensed entities.
Despite these challenges, Taiwan’s government is moving forward with its exploration of Bitcoin’s potential role in the national reserves. The central bank’s pilot program and feasibility studies will lay the groundwork for a broader adoption of Bitcoin.
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