Taiwan’s legislature has urged the federal government to audit its Bitcoin holdings and take into account the cryptocurrency for strategic reserves, doubtlessly diversifying away from its reliance on the US greenback. Premier Cho Jung-tai, responding to legislative stress, has pledged an in depth report by the tip of the 12 months.
This initiative follows rising worldwide momentum for Bitcoin reserves, with a number of US states and main monetary our bodies exploring diversifying into digital property.
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Lawmakers Search Bitcoin Audit and Reserve Technique
On Tuesday, Kuomintang legislator Ju-Chun Ko raised issues about Taiwan’s heavy publicity to the US greenback and the rising relevance of digital currencies throughout a Legislative Yuan session.
As of September 2025, Taiwan’s overseas alternate reserves totaled $602.94 billion, in keeping with the Central Financial institution of the Republic of China. Over 90% of those property are in US {dollars}, which lawmakers argue places Taiwan at elevated threat from forex fluctuations and coverage modifications.
Ko warned that over-reliance on the US greenback exposes Taiwan to the danger of forex depreciation if the greenback weakens or the New Taiwan greenback features worth. Such traits may erode the buying energy of reserves, threaten stability, and problem macroeconomic resilience.
Ko additionally known as for a right away stock of all government-held Bitcoin, together with property seized in authorized circumstances. In 2024, Taiwanese prosecutors confiscated round $146 million in cryptocurrency in a significant fraud case, highlighting the potential worth of government-held digital property.
Taiwan’s legislator Ju-Chun KO of Kuomintang asks questions of the Central Financial institution Governor Yang Chin-long and the federal government Premier Cho Jung-tai throughout a Legislative Yuan session. Supply: courtesy of Ju-Chun KO
Ko added that confiscated Bitcoin from authorized circumstances needs to be held for potential strategic use slightly than shortly liquidated. This coverage would assist Taiwan construct a digital reserve base, notably as rules evolve.
Premier Cho Jung-tai famous that whereas the US greenback continues to be the dominant settlement forex globally, the federal government stays open to evaluating rising digital property. Central Financial institution Governor Yang Chin-long dedicated to offering an up to date, balanced report on a Bitcoin reserve technique by year-end 2025.
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International Momentum for Bitcoin Strategic Reserves
Taiwan’s exploration of Bitcoin reserves displays a worldwide shift. On March 6, 2025, President Donald J. Trump signed an government order establishing the Strategic Bitcoin Reserve and america Digital Asset Stockpile.
A number of US states are additionally advancing their very own Bitcoin reserve legal guidelines. The BITCOIN Act of 2025, led by Senator Cynthia Lummis, instructs the US Treasury to buy as much as a million Bitcoin over 5 years, requiring safe storage with a minimal 20-year holding interval.
The Nationwide Convention of State Legislatures reviews that many states have proposed or handed cryptocurrency strategic reserve payments in 2025. Ko referenced 18 US states, together with New Hampshire, Arizona, and Texas, which have already built-in Bitcoin into reserve insurance policies.
Deutsche Financial institution analysts undertaking that Bitcoin may turn into a core monetary asset by 2030, attaining a reserve standing much like that of gold. Such forecasts have strengthened arguments for Bitcoin adoption amongst world central banks.
Regulatory Delays and Taiwan’s International Place
Whereas reserve planning advances, Taiwan faces regulatory hurdles for digital property. Legislator Ko criticized sluggish progress on the Digital Asset Service Supplier specialty regulation, cautioning that uncertainty may threaten trade development and dampen Taiwan’s function in digital finance.
9 cryptocurrency platforms are regulated in Taiwan, however additional delays in complete VASP laws might impede growth and restrict fintech alternatives.
Internationally, frameworks such because the US GENIUS Act and Singapore’s digital asset requirements present complete fashions for cryptocurrency oversight. Ko inspired a cooperative framework between banks and VASPs, slightly than a hierarchical method, to assist innovation.
Because the Central Financial institution prepares its year-end analysis, the talk highlights bigger questions of economic autonomy in an more and more digital world. The federal government’s response will present whether or not Taiwan will diversify its reserves or maintain to conventional property as world finance evolves.
