Taiwan Weighs Bitcoin for Strategic Reserves

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• Taiwan audits Bitcoin for potential strategic reserves.
  
• Over 90% of foreign reserves are in US dollars, prompting diversification.
  
• Year-end report will guide Taiwan’s digital asset strategy.

Taiwan’s legislature is pushing the government to audit its Bitcoin holdings and explore cryptocurrency as part of its strategic reserves. Lawmakers argue that the nation’s heavy reliance on the US dollar—over 90% of its $602.94 billion foreign exchange reserves—exposes Taiwan to currency fluctuations that could undermine economic stability. Premier Cho Jung-tai has committed to a detailed report on Bitcoin reserve strategy by the end of 2025.

Legislative Push for Bitcoin Inventory

Kuomintang legislator Ju-Chun Ko highlighted the risks of dollar dependency during a Legislative Yuan session. Ko proposed an immediate audit of all government-held Bitcoin, including assets seized in legal cases, such as the $146 million in cryptocurrency confiscated in 2024. He suggested that these digital assets could form a “strategic reserve” rather than being quickly liquidated, creating a foundation for Taiwan’s potential digital asset strategy.

Global Momentum Behind Digital Reserves

Taiwan’s initiative reflects a growing international trend. In the US, several states and federal initiatives are moving toward Bitcoin-based reserves. The BITCOIN Act of 2025, for example, directs the Treasury to acquire up to one million Bitcoin over five years. Analysts from Deutsche Bank forecast that Bitcoin could become a core financial asset by 2030, rivaling gold in reserve status. Such developments provide a compelling model for Taiwan as it assesses its own digital asset strategy.

Also Read: Taiwan’s New Crypto Rules – VASPs Face $155K Fines, 2-Year Prison Terms By 2025

Regulatory Challenges and Future Outlook

Despite interest in Bitcoin, Taiwan faces regulatory hurdles. The slow rollout of the Virtual Asset Service Provider (VASP) law has raised concerns over industry growth and the nation’s digital finance position. Ko emphasized the need for cooperative frameworks between banks and crypto platforms to foster innovation while maintaining oversight. The Central Bank’s upcoming year-end evaluation will reveal whether Taiwan will diversify its reserves or maintain its traditional focus on the US dollar.

Taiwan is at a crossroads in modernizing its reserve strategy. By auditing Bitcoin holdings and considering cryptocurrency for strategic reserves, the nation could reduce its dependence on the US dollar while aligning with global trends. The year-end report from Premier Cho and the Central Bank will be a key indicator of Taiwan’s financial autonomy in an increasingly digital world.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.