Key Takeaways
- Taiwan is considering adding Bitcoin to its national reserves.
- Legislator Ju-Chun Ko cited currency volatility and U.S. dollar reliance as key issues.
- No formal policy has been adopted, but discussions are underway.
Taiwan is exploring the possibility of adopting a Bitcoin reserve strategy as it faces currency volatility and increasing scrutiny over its dependence on the U.S. dollar.
The development was revealed in a May 7 X post by Samson Mow, CEO of Bitcoin infrastructure firm JAN3.
Legislative discussions
Mow met with Taiwanese legislator Ju-Chun Ko to discuss incorporating Bitcoin into Taiwan’s financial reserves.
Ko has formally called on the National Central Bank to assess the feasibility of such a move.
Justification for reserve diversification
In a public statement, Ko pointed to severe fluctuations in the New Taiwan Dollar and recent disruptions in banking systems as justification for reserve diversification.
Ko stated:
The New Taiwan Dollar has experienced significant fluctuations recently. From a daily appreciation of 5% to a daily depreciation of 5%. Many people are nervous… We lack financial resilience… Even Bitcoin should be taken into consideration.
Global context & future prospects
He also referenced similar initiatives in the United States, where lawmakers in several states have introduced bills to create strategic Bitcoin reserves.
While no official policy has been enacted, Taiwan’s interest reflects growing concern over exposure to foreign currencies and an effort to enhance monetary sovereignty.
Further developments will determine whether Taiwan transitions from exploratory discussions to actual Bitcoin adoption in its reserves.
