Taiwan is moving closer to formally studying Bitcoin as part of its national strategic reserves, amid growing political support and rising concerns over currency stability.
In a post on X, legislative Yuan member Cho Jung-tai confirmed that both the central bank and the premier’s office have agreed to review Bitcoin’s potential use in national reserves.
Specifically, he noted that officials will examine regulatory options, create a policy framework, and test limited Bitcoin holdings. According to Cho, the trial phase may begin with seized Bitcoin currently awaiting auction.
Notably, Cho began exploring the concept in May 2025 after meeting with Samson Mow, CEO of JAN3. Following that meeting, Cho stated that Bitcoin could both strengthen Taiwan’s national security and enhance long-term financial resilience.
Currency Volatility Fuels Calls for Diversification
Taiwan’s interest in Bitcoin comes at a time of pronounced currency turbulence, as shifting U.S. tariff policies have driven significant volatility in the New Taiwan Dollar this year.
To counter this, the central bank purchased $10.12 billion in May, a move aimed at stabilizing the currency.
Although the intervention eased short-term pressure, it also reignited debate over the island’s dependence on U.S. dollar assets.
Former Premier Calls for Broader Reserve Strategy
Former Premier Chen Chong has long warned that Taiwan relies too heavily on the U.S. dollar. For instance, in 2023, he criticized Taiwan’s limited gold reserves, observing that France and Germany hold considerably larger amounts of gold.
Chen has since argued that the central bank stayed too focused on stable, U.S.-linked assets, thereby creating concentration risks.
Similarly, Chinese Nationalist Party (KMT) Chairman Eric Chu questioned Taiwan’s large holdings of U.S. debt. He asked how much of those assets Taiwan could actually redeem during a crisis.
Diversification Trend Extends Beyond Taiwan
Meanwhile, global reserve managers are moving in a similar direction. A recent survey of 75 central bank managers found that 60% plan to diversify their portfolios within the next two years.
Additionally, 73% expect the share of U.S. dollars in global reserves to decline due to geopolitical tensions and policy uncertainty.
Furthermore, several countries have begun exploring Bitcoin as part of their fiscal strategy. The United States recently created a Strategic Bitcoin Reserve under President Donald Trump. Similarly, El Salvador and Argentina have adopted policies promoting Bitcoin to address inflation and dependence on centralized monetary systems.
If Taiwan adopts even a limited Bitcoin reserve plan, it could lead the region in digital asset adoption. Such a shift could influence how other Asian economies evaluate Bitcoin’s role in traditional financial systems.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
