Taiwan Weighs Adding Bitcoin to National Reserves in Major Policy Shift | Invesloan.com

Taiwan’s government is moving closer to integrating Bitcoin into its national reserve strategy, with the island’s Executive Yuan and Central Bank agreeing to evaluate Bitcoin as a potential strategic asset and explore pilot holdings using seized BTC currently awaiting auction.

The initiative, spearheaded by legislator Dr. Ju-chun Ko and backed by Samson Mow, CEO of Bitcoin infrastructure firm JAN3, marks one of Asia’s most significant steps toward sovereign Bitcoin adoption.

JAN3 confirmed the development following growing debates within Taiwan’s legislature over reducing dependence on traditional reserve assets, according to a report by Bitcoin Magazine.

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.

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.

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