Legislator Dr. Ko Ju-Chun presented a Bitcoin Policy Institute report to Taiwan’s Premier and Central Bank of China (CBC) Governor Yang Chin-long on April 29, making the case that Taiwan should direct a portion of its $602 billion in foreign exchange reserves toward bitcoin.
The BPI report argued that even a small allocation could provide diversification, seizure resistance, and a hedge against inflationary monetary policies tied to heavy USD exposure.
The geopolitical case for bitcoin
The report frames bitcoin’s seizure resistance as especially relevant for an island nation facing persistent territorial threats from the People’s Republic of China.
Traditional reserve assets like US Treasuries or gold held in foreign vaults carry counterparty risk—if tensions escalate, those assets could theoretically be frozen or rendered inaccessible.
Bitcoin stored with proper custody protocols sidesteps that problem entirely.
The report also positions bitcoin as an alternative to the heavy dollar concentration typical of Asian central bank reserves.
The central bank already said no once
In late 2025, the CBC conducted its own evaluation of bitcoin as a potential reserve asset and passed, citing concerns over volatility, liquidity constraints, and custody risks.
However, the CBC has since established a digital asset sandbox using 210 bitcoins seized from illicit activities.
Taiwan’s financial regulators have classified bitcoin as a speculative commodity since roughly 2013–2014, so the sandbox represents a quiet but meaningful evolution from that initial stance.
Legislation and stablecoins on deck
Following his presentation, Dr. Ko requested a follow-up report examining stablecoins and their implications for digital asset reserves, expected within a month.
Taiwan’s Virtual Assets Service Act and accompanying stablecoin regulations are also working through the legislative process.
A 1% allocation from Taiwan’s $602 billion reserves would represent billions in potential bitcoin demand, joining a growing list of countries exploring bitcoin as a strategic asset.
