Lawmaker Ko Ju-Chun proposes adding Bitcoin to the national reserve. Taiwan has a gold gold of 423 meters on its asset base. New Hampshire, the US, has passed a law that includes Bitcoin in its state reserves.
Taiwan is considering important policy changes. Bitcoin can participate in the national reserves.
Faced with inflationary pressures, global trade tensions and increasing dependence on the US Treasury Department, the country is now questioning whether financial buffers are truly safe.
Rep. Ko Ju-Chun recently proposed to include Bitcoin in the central bank’s reserve mix.
The proposal reflects a broader revaluation of traditional reserve assets, particularly as more than 90% of Taiwan’s US$577 billion foreign exchange reserves are currently tied to the US Treasury Department, raising concerns about diversification and liquidity during the crisis.
Rising currency risk and dependence on the US Treasury Department
Taiwan’s export-driven economy is particularly sensitive to geopolitical changes and inflation trends.
The rise in tensions between the US and China and the risk of supply chain disruptions have made lawmakers increasingly wary of the vulnerability of the new Taiwan Dollar (NTD).
Currently, Taiwan holds 423 meters of gold, with almost all foreign exchange holdings in assets denominated in US dollars.
Analysts point out that while these have been historically reliable, their over-enrichment exposes the country to US monetary policy, and potential sanctions should worsen relations.
In his speech to Congress, Ko Ju-Chun emphasized that Taiwan needs “strategic flexibility” in how it manages its reserves, particularly based on scenarios of financial decoupling or limiting access to the dollar market.
Bitcoin floated as a hedge rather than an alternative
The core of the proposal is not to overturn Taiwan’s current preliminary strategy, but to diversify it.
KO’s plan calls for a small percentage of Taiwan’s reserves to be allocated to Bitcoin.
Combined with Bitcoin’s fixed supply of 21 million tokens and its distributed ledger system, that is the main reason it is considered.
According to Professor Li Yiru of the National Taiwan University, these functions are particularly resistant to inflation dilution, like the Fiat currency that central banks can expand during economic shocks.
Former Prime Minister Chen Kong also said that while Bitcoin may not serve as a large trading currency, its role as a digital store of value will help protect Taiwan’s financial sovereignty.
Bitcoin Reserve Global Momentum
Taiwan’s deliberations occur when other governments are also experimenting with Bitcoin at the state level.
In the US, New Hampshire recently passed the Bitcoin Reserve Act, allowing the state to include digital assets in its reserves.
The move has prompted discussion in other American states and emerging markets facing high inflation and currency instability.
Although Taiwan has yet to formalise such measures, the conversation shows a shift in how policymakers view crypto assets not just as speculative investments, but as a potential component of national financial infrastructure.
In addition to legislative benefits, KO proposed to establish a task force to study feasibility, volatility, and custody risks associated with Bitcoin reserves.
The central bank has not responded publicly to the proposal, but will be further discussed in future budget and monetary policy reviews.
The broader context of these discussions also includes the need to balance the risks posed by Taiwan’s strong technical sector and geopolitical position.
Diversification of reserve assets can help not only economic goals but also broader strategic autonomy.
