Key Takeaways:
- Taiwan may diversify $602.94B in reserves by adding Bitcoin.
- Lawmakers demand a full audit of government-held digital assets.
- Global trends suggest Bitcoin could become a strategic reserve by 2030.
- Regulatory delays may affect Taiwan’s competitiveness in digital finance.
Taiwan Explores Bitcoin Reserves to Diversify Currency Exposure
Taiwan is taking a closer look at Bitcoin as a potential addition to its national reserves, as lawmakers push for a full audit by the end of 2025. Premier Cho Jung-tai has committed to a detailed report assessing the government’s Bitcoin holdings, responding to concerns over the nation’s heavy reliance on the US dollar.
Also Read: Katie Hobbs Vetoes Arizona Bill to Add Bitcoin to State Reserves
With foreign exchange reserves totaling $602.94 billion, more than 90% are held in US dollars. Legislators argue that this concentration exposes Taiwan to currency fluctuations that could erode reserve value and threaten macroeconomic stability.
Lawmakers Demand Audit and Strategic Use of Bitcoin
Kuomintang legislator Ju-Chun Ko emphasized the need for a comprehensive inventory of government-held Bitcoin, including assets confiscated in legal cases. In 2024, Taiwanese prosecutors seized around $146 million in cryptocurrency from a major fraud scheme.
Ko suggested these digital assets could be retained for strategic purposes rather than quickly liquidated. Premier Cho acknowledged the US dollar’s global dominance but expressed openness to evaluating digital assets. Central Bank Governor Yang Chin-long pledged an updated, balanced report on a potential Bitcoin reserve strategy by year-end 2025.
Global Momentum Fuels Taiwan’s Consideration
Taiwan’s initiative mirrors a global trend toward Bitcoin strategic reserves. In the United States, several states have passed or proposed laws integrating Bitcoin into government reserves, while the BITCOIN Act of 2025 instructs the US Treasury to acquire up to one million Bitcoin over five years. Analysts at Deutsche Bank project that Bitcoin could achieve reserve status comparable to gold by 2030, bolstering arguments for adoption by central banks worldwide.
Regulatory Hurdles Could Slow Adoption
Despite growing interest, Taiwan faces regulatory challenges. The delay in passing the Virtual Asset Service Provider (VASP) law could hinder digital finance development. Currently, only nine cryptocurrency platforms operate under regulation, and broader legislation is needed to maintain Taiwan’s competitiveness against countries with clearer crypto frameworks, such as Singapore and certain US states.
Also Read: How Trade Tensions and Tariffs Could Drive Bitcoin Adoption, According to Grayscale
Conclusion
Taiwan’s exploration of Bitcoin reserves highlights a pivotal moment for financial strategy in an increasingly digital world. The upcoming government audit will determine whether Bitcoin will complement traditional assets or remain a supplementary tool. For investors and policymakers, Taiwan’s decision could signal a broader shift toward digital asset integration in national reserves.
