In a bold move that could reshape Taiwan’s financial landscape, legislator Ko Ju-Chun has urged the government to consider incorporating Bitcoin into its national reserves. Speaking at the National Conference on May 9, Ko argued that Bitcoin, the world’s leading cryptocurrency, presents a viable hedge against global economic uncertainties—a sentiment that resonates amid Taiwan’s economic volatility and geopolitical tensions.
A New Financial Strategy
Ko’s proposition isn’t just a shot in the dark. Taiwan, with its export-heavy economy, has faced notable fluctuations in its national currency, the New Taiwan dollar, driven by global inflation and geopolitical risks. “We have a gold reserve of 423 metric tons and foreign exchange reserves totaling $577 billion, including US Treasury bonds,” Ko noted, painting a picture of Taiwan’s current financial backbone. Yet, he warned that in the face of mounting currency volatility or regional conflicts, the security and liquidity of these reserves could be jeopardized.
Highlighting Bitcoin’s attributes—its fixed supply, decentralized nature, and resistance to censorship—Ko suggested that Bitcoin could complement existing reserves, much like gold and foreign exchange do today. “Bitcoin has been operating for over 15 years,” he said. “Many countries are focusing on its hedging attributes. In intense situations, it may not face the risk of embargo.” This perspective contrasts with views like those of the Arizona Governor, who recently called crypto an ‘Untested Investment’ and vetoed a Bitcoin reserve bill.
Calculated Diversification
Ko isn’t suggesting that Bitcoin is a panacea for Taiwan’s economic challenges. Rather, he advocates for a cautious, proportionate integration of Bitcoin into Taiwan’s reserve strategy. “A small proportion of Bitcoin could enhance our sovereign asset allocation and risk hedging,” Ko proposed, suggesting that up to 5% of Taiwan’s $50 billion reserve could be allocated to Bitcoin.
The legislator’s remarks come in the wake of discussions with Bitcoin advocate Samson Mow, who has championed the cryptocurrency’s adoption at a state level through his firm, Jan3. Ko’s vision is not without precedent—El Salvador has already made headlines with its bold Bitcoin adoption strategy, a move that has sparked both interest and skepticism across the globe. Similarly, Metaplanet is making strides by registering a U.S. Treasury arm to grow its Bitcoin reserve strategy.
A Shifting Crypto Landscape
The call for Bitcoin reserves comes as Taiwan is increasingly positioning itself as a crypto-friendly jurisdiction. The Financial Supervisory Commission has been pushing for institutional trials of crypto custody services, indicating a warming stance toward digital currencies. This shift is particularly noteworthy against the backdrop of mainland China’s continued crackdown on cryptocurrency activities, including mining, since 2021.
Ko’s proposal raises critical questions about Taiwan’s future financial strategies. Could Bitcoin, often dubbed the “digital gold,” serve as a stabilizing force in Taiwan’s reserves? Or is it a volatile risk, given Bitcoin’s infamous price swings? As Ko himself alluded, “Bitcoin may be the gun of the digital era, or it could be gunpowder. A wise nation will not let weapons be in others’ hands.”
As Taiwan grapples with these questions, the global crypto market watches closely. The implications of Taiwan’s decision could ripple beyond its borders, influencing how other nations perceive and integrate digital assets into their financial frameworks. With Bitcoin’s potential to diversify and hedge against economic unpredictability, Taiwan stands at a crossroads that could redefine its economic resilience for years to come.
Source
This article is based on: Taiwan lawmaker calls for Bitcoin reserve at national conference
Further Reading
Deepen your understanding with these related articles:
- Metaplanet to open US arm, plans to raise $250M for Bitcoin strategy
- Strategy’s $84B Bitcoin Expansion Plan Backed by Wall Street Analysts
- Bitcoin ETFs, gov’t adoption to drive BTC to $1M by 2029: Finance Redefined
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
