- Taiwan weighs adding Bitcoin to reserves as officials look to reduce reliance on the U.S. dollar.
- Lawmaker Ko urges a fast-tracked crypto review, pushing the central bank to assess risks and policy fit.
- Global divide grows as some nations adopt Bitcoin while others remain cautious on reserve use.
Taiwan is stepping up discussions around cryptocurrency policy after lawmaker Ko Ju-Chun proposed adding Bitcoin to the island’s foreign reserves. Speaking during a Legislative Yuan session on April 29, Ko presented findings from the Bitcoin Policy Institute to Premier Cho Jung-tai and central bank governor Yang Chin-long.
The proposal would see Taiwan put a small share of its $602 billion reserves into Bitcoin to cut its reliance on the U.S. dollar and spread risk. Ko also asked the central bank to produce a detailed report on digital assets within a month, adding to pressure on policymakers to consider other reserve options.
Strategic Shift Toward Bitcoin Reserves
Ko’s proposal draws on research from the Bitcoin Policy Institute, which highlights risks linked to Taiwan’s heavy reliance on the U.S. dollar. According to the report, more than 80% of the island’s reserves are held in dollar-denominated assets, a concentration that could expose Taiwan to currency shifts and geopolitical tensions.
The institute argues that Bitcoin could offer an alternative because it operates outside government control and may be less vulnerable during extreme scenarios such as financial sanctions or blockades. Jacob Langenkamp said Taiwan’s situation combines geopolitical risk with a high level of reserve concentration, strengthening the case for considering Bitcoin as part of its reserves.
Sam Lyman added that the group’s research is gaining attention among policymakers in the U.S. and other regions, pointing to growing institutional interest in digital assets as a potential strategic tool.
Policy Challenges and Global Context
Taiwan’s central bank has previously pushed back on using Bitcoin as a reserve asset, citing concerns over price volatility, limited liquidity, and custody risks in 2025. Even so, it has tested limited exposure through a pilot program using 210 confiscated Bitcoin, signaling a cautious approach to digital assets.
Ko’s latest request could accelerate that process. The central bank is expected to produce a report examining legal considerations, price risks, and custody options, as well as how Bitcoin might fit within Taiwan’s foreign exchange management framework. The findings are likely to guide the government’s next steps.
Countries are taking different paths when it comes to holding Bitcoin as part of their reserves. El Salvador has built up a holding of about 5,700 BTC as part of its national strategy. In contrast, the United States is still weighing proposals, with no final decision so far. Switzerland and Singapore have introduced crypto-friendly rules, but neither has taken steps to add Bitcoin to official reserves.
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