Taiwan is stepping deeper into crypto policy discussions as lawmaker Dr. Ko Ju-Chun presented a formal proposal to add Bitcoin to the country’s national reserves. The report, backed by the Bitcoin Policy Institute, was delivered directly to Premier Cho Jung-tai and central bank Governor Yang Chin-long during a Legislative Yuan session. This move signals a clear shift, bringing Bitcoin from theory into serious government-level consideration.
Taiwan currently holds around $602 billion in foreign exchange reserves, with over 80% tied to U.S. dollar assets. This heavy concentration has raised concerns about exposure to geopolitical risks and currency instability. Dr. Ko urged the government to explore allocating a portion of these reserves into Bitcoin as a strategic hedge. She also asked the central bank to submit a new report within one month on stablecoins and digital asset reserves.
As BPI researcher Jacob Langenkamp explained, “Taiwan faces a unique convergence of geopolitical risk and reserve concentration,” adding that Bitcoin could remain accessible even in extreme scenarios where traditional assets are restricted. Sam Lyman highlighted the importance of the move, saying, “Dr. Ko’s decision… demonstrates the seriousness with which Taiwan’s lawmakers are evaluating Bitcoin as a strategic asset.”
Proponents argue that Bitcoin offers several advantages: a hedge against inflation due to its fixed supply of 21 million coins, geopolitical diversification by reducing reliance on U.S. dollar-denominated assets, and technological leadership positioning Taiwan as a hub for blockchain innovation. However, critics point to Bitcoin’s price volatility, regulatory uncertainty, and environmental concerns as major risks.
Despite the momentum, Taiwan’s central bank remains cautious. It had previously rejected Bitcoin in 2025 due to concerns over volatility, liquidity, and custody risks. However, the stance is evolving. The bank has already begun testing digital assets through a sandbox using seized Bitcoin, suggesting openness to further exploration.
The proposal now moves to the executive branch and the central bank for review. The lawmaker requested a report within one month covering: legal framework for holding crypto assets, risk assessment of Bitcoin volatility, potential custody solutions and security measures, and impact on foreign exchange reserves management. This report will likely shape the government’s stance and determine whether Taiwan moves forward with a pilot program or full-scale adoption.
Taiwan is not alone in this exploration. El Salvador adopted Bitcoin as legal tender in 2021, the Central African Republic followed in 2022, and the United States has seen legislative proposals for a national Bitcoin reserve. If Taiwan adopts a Bitcoin strategic reserve, it could have far-reaching implications for the banking sector, regulatory landscape, and international relations.
