Taiwan Considers Historic Bitcoin Reserve Move – A Game-Changer for National Treasury Strategy

Taiwan shakes up global finance with a radical crypto pivot.

Subheading: From Gold Standard to Digital Gold?

In a move that could send shockwaves through traditional reserve management, Taiwan's monetary authorities are reportedly exploring Bitcoin allocation in sovereign reserves. The island economy—long a semiconductor powerhouse—now eyes blockchain as its next strategic play.

Subheading: The $64,000 Question (Literally)

While central banks globally still treat crypto as a speculative asset, Taiwan's potential embrace mirrors El Salvador's 2021 Bitcoin gambit—but with 500x the GDP firepower. Analysts note the timing: just as BlackRock's spot BTC ETF crosses $25B AUM.

Subheading: Wall Street Meets Blockchain Strait

If implemented, the policy would force the PBOC to recalculate its Taiwan risk models—while giving crypto maximalists fresh ammo against 'boomer finance' skeptics. After all, nothing proves 'sound money' like volatile assets backed by... checks notes... meme culture and Elon tweets.

Closing thought: When nation-states start chasing 10x returns, maybe the real bubble was fiat all along.

Taiwan Lawmaker Cites Dollar Dependence in Push for Bitcoin Reserves

Dr. Ko has been vocal about the risks of overreliance on the US dollar and the country’s need for diversified financial safeguards.

Speaking earlier this year, he urged the central bank to consider Bitcoin’s inclusion in national reserves, citing global inflation, rising geopolitical tension, and the volatility of the New Taiwan Dollar.

The local currency has fluctuated as much as 5% in a single trading day, prompting calls for alternative hedging mechanisms.

Taiwan currently holds approximately 423 metric tonnes of Gold and $577 billion in foreign exchange reserves, with around 92% invested in US Treasury bonds.

Dr. Ko clarified that Bitcoin WOULD not replace these traditional holdings but serve as a complementary asset to strengthen the country’s financial resilience through diversification.

“Bitcoin offers a unique hedge due to its decentralized and fixed-supply nature,” Ko told lawmakers, referencing its independence from monetary policy and foreign influence.

JUST IN: Taiwan Congress Legislator announces its central bank has committed to studying "#Bitcoin as strategic reserve"

They also committed to piloting a BTC treasurypic.twitter.com/KvbbkBY3Y4

Global precedents appear to support Ko’s proposal. In March 2025, US President Donald TRUMP signed an executive order to create a Strategic Bitcoin Reserve, absorbing roughly $17 billion worth of forfeited BTC.

Similarly, countries such as El Salvador and Argentina have introduced frameworks to integrate Bitcoin into their fiscal or reserve strategies, highlighting its utility against inflation and banking instability.

Taiwan’s Financial Supervisory Commission (FSC) has already taken a progressive stance toward digital assets, allowing professional investors to buy foreign Bitcoin and crypto exchange-traded funds (ETFs) since 2024.

While the proposal has yet to be enacted, the central bank is expected to conduct feasibility studies and initiate pilot programs with seized Bitcoin before broader adoption.

Taiwan Uncovers $75M Crypto Laundering Ring

In August, Taiwanese prosecutors indicted 14 individuals in the nation’s largest crypto money-laundering case, exposing a NT$2.3 billion ($75 million) fraud that deceived over 1,500 victims through fake crypto exchange franchises.

The operation, led by Shi Qiren, ran more than 40 storefronts under names like “CoinW” and “BiXiang Technology,” posing as licensed exchanges while secretly funneling investor funds into overseas crypto accounts.

Authorities seized cash, crypto, and luxury assets worth over NT$100 million, while Shi faces up to 25 years in prison for fraud, money laundering, and organized crime.

The group’s success hinged on exploiting regulatory blind spots in Taiwan’s crypto oversight. By claiming false approval from the Financial Supervisory Commission, the network built investor trust, collected hefty franchise fees, and used “deposit machines” to mimic legitimate exchange operations.

Prosecutors described the scheme as “systematic fraud” that Leveraged Taiwan’s crypto curiosity and weak enforcement.