Introduction to Bitcoin Reserves
Taiwan’s Premier and Central Bank have agreed to study Bitcoin as a strategic reserve, draft pro-Bitcoin regulations, and pilot Bitcoin treasury holdings. This initiative is led by legislator Dr. Ju-chun Ko and supported by Samson Mow, CEO of JAN3, a Bitcoin technology company focused on accelerating Bitcoin adoption. The announcement comes after growing discussions among lawmakers about the risks of overreliance on traditional reserves.
Background
In May, Dr. Ju-chun Ko urged the National Central Bank to evaluate including Bitcoin in the country’s strategic reserves. Ko cited the New Taiwan Dollar’s volatility, global inflation, and regional geopolitical risks as reasons for exploring alternative reserve strategies. Taiwan’s New Taiwan Dollar has seen extreme volatility this year, swinging up or down by 5% in a single day. Ko criticized the country’s overreliance on the U.S. dollar, noting a lack of financial resilience.
The Need for Diversification
Ko suggested that Bitcoin should also be considered as part of Taiwan’s financial strategy. Taiwan’s existing reserves reportedly include around 423 metric tonnes of gold and $577 billion in foreign currency, of which 92% is invested in U.S. Treasury bonds. Ko emphasized that Bitcoin would not replace these assets but serve as a complementary component, enhancing financial resilience through diversification.
Global Trends
Global trends appear to support this approach. In March 2025, U.S. President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve, absorbing over $17 billion in forfeited bitcoins. Other countries, including Argentina and El Salvador, have also explored Bitcoin integration into national reserves, citing its potential as a hedge against inflation and centralized banking risks.
Taiwan’s Plan
The central bank intends to conduct detailed studies and pilot BTC holdings with seized Bitcoin before any broader implementation. If approved, Taiwan would be among the first Asian countries to hold or pilot Bitcoin as a strategic reserve. Back in 2024, Taiwan’s Financial Supervisory Commission started to permit professional investors to buy foreign Bitcoin and crypto ETFs.
Conclusion
In conclusion, Taiwan’s decision to explore Bitcoin as a strategic reserve is a significant step towards diversifying its financial assets and enhancing its financial resilience. With the global trend of countries adopting Bitcoin as a reserve asset, Taiwan’s move is likely to have a positive impact on the country’s economy and its position in the global financial market. As the world becomes increasingly digital, it will be interesting to see how Taiwan’s experiment with Bitcoin as a strategic reserve plays out and what lessons it may hold for other countries considering similar moves.
