Taiwan Explores Bitcoin for Strategic Reserve Holdings

Taiwan is moving closer to formally studying Bitcoin as part of its national strategic reserves, amid growing political support and rising concerns over currency stability.

Specifically, he noted that officials will examine regulatory options, create a policy framework, and test limited Bitcoin holdings. According to Cho, the trial phase may begin with seized Bitcoin currently awaiting auction.

To counter this, the central bank purchased $10.12 billion in May, a move aimed at stabilizing the currency.

Although the intervention eased short-term pressure, it also reignited debate over the island’s dependence on U.S. dollar assets.

Former Premier Calls for Broader Reserve Strategy

Former Premier Chen Chong has long warned that Taiwan relies too heavily on the U.S. dollar For instance, in 2023, he criticized Taiwan’s limited gold reserves, observing that France and Germany hold considerably larger amounts of gold.

Chen has since argued that the central bank stayed too focused on stable, U.S.-linked assets, thereby creating concentration risks.

Similarly, Chinese Nationalist Party (KMT) Chairman Eric Chu questioned Taiwan’s large holdings of U.S. debt. He asked how much of those assets Taiwan could actually redeem during a crisis.

Diversification Trend Extends Beyond Taiwan

Meanwhile, global reserve managers are moving in a similar direction. A recent survey of 75 central bank managers found that 60% plan to diversify their portfolios within the next two years.

Additionally, 73% expect the share of U.S. dollars in global reserves to decline due to geopolitical tensions and policy uncertainty.

Furthermore, several countries have begun exploring Bitcoin as part of their fiscal strategy. The United States recently created a Strategic Bitcoin Reserve under President Donald Trump. Similarly, El Salvador and Argentina have adopted policies promoting Bitcoin to address inflation and dependence on centralized monetary systems.

If Taiwan adopts even a limited Bitcoin reserve plan, it could lead the region in digital asset adoption. Such a shift could influence how other Asian economies evaluate Bitcoin’s role in traditional financial systems.