Taiwan Considers Adding Bitcoin to National Strategic Reserves

Taiwan is taking a major step toward integrating Bitcoin into its national financial strategy. As the country’s Executive Yuan and Central Bank begin evaluating the idea of holding Bitcoin as part of its strategic reserves. According to a report from Bitcoin Magazine, the proposal includes piloting Bitcoin treasury holdings using seized BTC that is currently awaiting auction.  If approved, Taiwan would become one of the first Asian economies to formally study Bitcoin’s role as a strategic reserve asset. This signals a major shift in regional monetary policy.

A Push for Diversification and Financial Resilience

The initiative is being led by Legislator Dr. Ju-chun Ko, who has been one of Taiwan’s most vocal advocates for Bitcoin policy reform. Ko argues that Bitcoin can serve as a complementary reserve asset alongside gold and the U.S. dollar. It helping Taiwan strengthen its financial resilience in a rapidly changing global economy. “Bitcoin’s fixed supply and decentralized nature make it an ideal diversification tool,” Ko said earlier this year. “Even a small allocation could protect Taiwan against global currency risks and systemic shocks.”

Taiwan’s current reserves include 423 tons of gold and $577 billion in foreign currency, of which nearly 92% is held in U.S. Treasuries. Lawmakers now fear that such heavy dependence on the dollar could expose the island nation to economic vulnerabilities. It is particularly amid rising inflation and geopolitical tensions in East Asia.

Central Bank to Pilot Bitcoin Holdings

According to JAN3, a Bitcoin technology firm led by Samson Mow, the Taiwanese government will pilot BTC holdings. While using seized Bitcoin from law enforcement cases before expanding the program. The coins, which were previously marked “to be auctioned.” This will be managed under a new custody framework being drafted by financial regulators.

The Central Bank and Executive Yuan are reportedly working on a pro-Bitcoin regulatory draft. That would define how they can integrate digital assets into the nation’s treasury system. This framework aims to establish legal clarity for state-managed Bitcoin holdings. While ensuring compliance with international financial standards. Mow, who is advising the project, called Taiwan’s move “a forward-thinking step.” That aligns with global trends in sovereign Bitcoin adoption.

Following the Global Shift Toward Bitcoin

Taiwan’s decision comes as more countries explore Bitcoin as a strategic hedge. Earlier this year, the United States established a Strategic Bitcoin Reserve. It holds roughly $17 billion in forfeited BTC. Similarly, El Salvador and Argentina have advanced efforts to incorporate Bitcoin into their national reserve or monetary systems. Dr. Ko referenced these examples in a May speech to the Legislative Yuan. He stated that “Taiwan cannot afford to ignore a monetary evolution already embraced by major economies.” 

While the initiative remains in its early stages, momentum is clearly building. The Central Bank’s evaluation, supported by lawmakers and private Bitcoin advocates. It could mark the beginning of Asia’s first sovereign-level Bitcoin experiment. If successful, Taiwan’s Bitcoin reserve pilot may not only diversify its treasury. But also set a precedent for other regional economies seeking independence from traditional reserve assets.