Lawmakers Push Proposal to Include Bitcoin in Taiwan’s Strategic Reserves

Taipei’s government is reviewing a proposal to include Bitcoin in its official reserves, a move that could mark a turning point in Asia’s financial strategy. The Legislative Yuan has instructed the executive branch to assess the benefits of integrating Bitcoin into the island’s $602 billion in foreign exchange reserves.

Taiwan Reviews Bitcoin’s Role in National Reserves

Lawmakers argue this step would strengthen Taiwan’s economic independence and reduce its reliance on the U.S. dollar, which currently represents more than 90% of reserve assets.

During a recent parliamentary session, Kuomintang legislator Ju-Chun Ko emphasized that excessive dependence on the dollar exposes the nation to external monetary risks. He pointed out that a sudden dollar depreciation or domestic currency appreciation could harm Taiwan’s reserve value and weaken its ability to manage future economic shocks. Financial analysts in Taipei noted that such diversification could also enhance the island’s geopolitical resilience and appeal to international investors.

Seized Bitcoin Holdings Under Government Review

Authorities have also begun auditing the digital assets confiscated in past criminal cases, including approximately $146 million worth of Bitcoin seized in 2024. Lawmakers propose that these assets remain under government custody rather than being sold on the open market, arguing they could serve as an initial strategic reserve of digital currency.

Prime Minister Cho Jung-tai responded favorably, confirming that the administration is preparing a detailed report on the feasibility of holding Bitcoin as part of national reserves. He highlighted that while the U.S. dollar remains dominant, growing international interest in digital assets merits serious consideration. Central Bank Governor Yang Chin-long backed the plan, pledging a full analysis by the end of 2025.

Growing Trend of Bitcoin Reserve Diversification

Taiwan’s initiative mirrors actions by several emerging economies exploring Bitcoin as a complementary asset. Countries such as El Salvador and Bhutan have already taken steps to integrate digital currencies into national balance sheets, citing resilience against inflation and foreign policy pressures.

If Taiwan moves forward, it could become the first advanced economy in Asia to formalize Bitcoin within its sovereign reserves — signaling a new era of monetary diversification in the region and potentially influencing other Asian economies to explore similar digital asset strategies.