- Ko Ju-Chun proposed adding Bitcoin to Taiwan’s reserves to hedge against global risks.
- Taiwan holds $577B in foreign exchange and 423 tons of gold, but no Bitcoin reserves yet.
- The lawmaker suggested allocating up to 5% of Taiwan’s $50B reserve fund to Bitcoin.
Taiwanese lawmaker Ko Ju-Chun has suggested that the government evaluate adding Bitcoin to the country’s reserves. During a national conference on May 9, Ko advocated that Bitcoin will likely be a strategic risk management strategy to mitigate increasing global economic risk, currency variation, and regional geopolitical tensions. He proposed that Taiwan enrich its national reserve portfolio with Bitcoin, gold, and foreign exchange.
Ko introduced his proposal to the Legislative Yuan and later posted it publicly on social media. The warrant for adopting Bitcoin fits into an emerging wave of sovereign discourse about using a cryptocurrency as a complementary reserve asset. According to Ko, even a small allocation can provide long-term strategic benefits.
Economic Pressures Prompt Diversification Discussion
Ko highlighted Taiwan’s status as an export-dependent economy, making it sensitive to global market changes. The New Taiwan Dollar has seen volatility because of inflation and changed geopolitical conditions. According to Ko, the country’s current reserve assets include 423 metric tons of gold and about $577 billion in foreign exchange reserves with substantial holdings in U.S. Treasury securities, which he cited in his remarks.
With the increased uncertainty, Ko said Taiwan may struggle to ensure the liquidity and safety of its reserves during a crisis. He listed Bitcoin’s decentralized, fixed supply, and censorship-resistant properties as justification for considering it a complementary asset. He commented that Bitcoin is outside normal financial channels and would not experience embargos under high-risk circumstances.
Ko’s campaign comes after consultations with Samson Mow, the firm that adopted Bitcoin state, and the head of the Bitcoin technology firm, Jan3. Ko clarified that he does not recommend substituting traditional reserve assets with Bitcoin; he recommends a small proportion as part of the diversification of risk strategy.
Bitcoin Adoption Gains Momentum in Taiwan’s Financial Dialogue
Ko had earlier proposed investing up to 5% of Taiwan’s $50 billion reserves in Bitcoin. He explained that this would assist the country in developing a more flexible financial strategy that would address changes in the international currency and regional risks. Ko compared Bitcoin to “the gun or gold of the digital era,” implying that guns or gold and technological tools like Bitcoin can offer nations more economic flexibility and security.
The proposal comes as the country toughens its crypto policies. The Financial Supervisory Commission has stated that institutional one-off pilot programs of crypto custody services have been demonstrated to accept innovation in digital finance. Meanwhile, mainland China prohibits diverse crypto activities, which only heightens Taiwan’s regional differences. Ko’s proposal is part of a larger discussion of how digital assets might determine future reserve management strategies.
