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- Taiwan plans to study Bitcoin for strategic reserves to strengthen financial stability.
- Currency volatility and U.S. dollar dependence drive the push for diversification.
- Adoption could make Taiwan a regional leader in integrating digital assets into national finance.
Taiwan is considering including Bitcoin in its national strategic reserves, signaling a potential shift in how the island approaches currency stability and long-term financial security. The move comes as political support grows and concerns rise over reliance on traditional U.S. dollar assets.
Government Moves Toward Digital Assets
Legislative Yuan member Cho Jung-tai confirmed that Taiwan’s central bank and premier’s office have agreed to study Bitcoin’s potential role in national reserves. Officials will examine regulatory frameworks, draft policy guidelines, and test limited Bitcoin holdings. Early trials could begin with seized Bitcoin currently awaiting auction.
Cho first raised the idea in May 2025 after meeting with Samson Mow, CEO of JAN3. He suggested that Bitcoin could enhance Taiwan’s national security while strengthening financial resilience over the long term.
Currency Volatility Sparks Diversification Talks
Taiwan’s renewed interest in Bitcoin coincides with ongoing currency turbulence. Shifts in U.S. tariff policies have caused significant fluctuations in the New Taiwan Dollar this year. In response, the central bank intervened in May, purchasing $10.12 billion to stabilize the currency.
While this eased immediate pressure, it also reignited discussions about Taiwan’s heavy reliance on U.S.-linked assets. Former Premier Chen Chong and KMT Chairman Eric Chu have repeatedly warned that concentrated holdings in U.S. dollars and debt could pose risks during economic crises.
Global Trend Toward Alternative Reserves
Taiwan is not alone in exploring alternatives to traditional reserve assets. A survey of 75 central bank managers found that 60% plan to diversify portfolios in the next two years, and 73% expect the share of U.S. dollars in global reserves to decline due to geopolitical uncertainties.
Also Read: Taiwan Weighs Bitcoin for Strategic Reserves
Several countries have already moved toward Bitcoin. The U.S. recently created a Strategic Bitcoin Reserve, while El Salvador and Argentina use digital assets to counter inflation and reduce reliance on centralized financial systems. If Taiwan adopts even a limited Bitcoin reserve, it could position the island as a regional leader in integrating digital assets into national finance.
Taiwan’s exploration of Bitcoin as a strategic reserve highlights growing global interest in alternative assets. With careful policy planning and trial implementation, the move could not only stabilize Taiwan’s financial system but also set a precedent for other Asian economies evaluating the role of digital currencies.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
