Taiwan lawmaker proposes $2.5B Bitcoin reserve for national strategy

Taiwanese legislator Ko Ju-Chun has urged the government to allocate up to 5% of its $50 billion national reserves—approximately $2.5 billion—to Bitcoin (CRYPTO:BTC) as part of a diversified reserve strategy.

Speaking at Taiwan’s National Finance Conference on May 9, Ko emphasised Bitcoin’s potential as a hedge against global economic uncertainty and regional geopolitical risks.

Ko highlighted Taiwan’s export-driven economy and the significant fluctuations of the New Taiwan dollar amid inflation and geopolitical tensions in East Asia.

“We currently have a gold reserve of 423 metric tons, and our foreign exchange reserves amount to $577 billion, including investments in US Treasury bonds,” he noted.

Ko argued that in scenarios of heightened currency volatility or regional conflict, traditional reserves might not ensure security and liquidity, whereas Bitcoin’s decentralised, censorship-resistant nature and fixed supply make it a valuable complementary asset.

“Bitcoin has been operating for over 15 years. Many countries are focusing on its hedging attributes. At the same time, in intense situations, it may not face the risk of embargo,” he said.

Ko clarified that Bitcoin would not replace existing reserves but serve as a supplementary tool to strengthen Taiwan’s financial resilience.

His proposal follows discussions with Bitcoin advocate Samson Mow, CEO of Jan3, who supports state-level Bitcoin adoption to mitigate fiat currency volatility.

Ko’s suggestion aligns with a growing global trend of exploring digital assets as strategic reserves, with some U.S. states and countries considering similar moves.

“When exchange rate risk and regional uncertainty increase, it is time to introduce new tools to construct a more flexible financial strategy framework,” he stated.

Taiwan is concurrently advancing crypto-friendly policies, with the Financial Supervisory Commission initiating institutional crypto custody trials in late 2024.

This proposal contrasts with Mainland China’s continued ban on most cryptocurrency activities since 2021.

Ko’s call for Bitcoin inclusion reflects increasing interest in digital assets as part of sovereign financial strategies amid evolving global economic and geopolitical challenges.

At the time of reporting, the Bitcoin (BTC) price was $104,489.