Taiwan’s legislature is taking significant steps toward the potential incorporation of Bitcoin into its strategic reserves, a move that could diminish the island nation’s dependency on the US dollar. In a recent session of the Legislative Yuan, Kuomintang legislator Ju-Chun Ko raised concerns about Taiwan’s heavy reliance on the US dollar, which as of September 2025 comprised over 90% of its foreign exchange reserves totaling $602.94 billion. This dependence, Ko argued, exposes Taiwan to risks associated with currency fluctuations and changing global economic policies.
Highlighting the growing relevance of digital currencies, Ko called for an immediate audit of all government-held Bitcoin, including assets obtained through legal seizures. In 2024, Taiwanese authorities confiscated approximately $146 million in cryptocurrency amid a major fraud investigation. This incident underscored the potential value of such digital assets, and Ko advocated for their retention rather than rapid liquidation, suggesting they could serve strategic purposes in building a more diversified reserve system.
Premier Cho Jung-tai responded to these legislative calls by committing to a comprehensive report on Bitcoin’s potential role in Taiwan’s reserves by the end of the year. He acknowledged the dominance of the US dollar as a global settlement currency while expressing the government’s willingness to assess emerging digital assets as part of a broader strategy.
The discourse surrounding Bitcoin reserve strategies is gaining traction worldwide. In March 2025, former US President Donald J. Trump signed an executive order to establish a Strategic Bitcoin Reserve and a complementary Digital Asset Stockpile in the United States. Many US states, led by initiatives such as the BITCOIN Act of 2025, are currently working on implementing their own Bitcoin reserve laws, indicating a growing recognition of the cryptocurrency’s potential as a core financial asset. As noted by Deutsche Bank analysts, Bitcoin is projected to achieve a status similar to gold by 2030.
Amid these developments, Taiwan confronts regulatory hurdles that could impede its progress in adopting digital currencies. Legislator Ko criticized the slow advancement of the Virtual Asset Service Provider (VASP) legislation, warning that prolonged uncertainty could stifle industry growth and affect Taiwan’s competitive position in the digital finance sector. Currently, nine cryptocurrency platforms operate under regulatory scrutiny in Taiwan; however, a lack of comprehensive and timely regulations may limit opportunities for development in this burgeoning sector.
Internationally, models like the US GENIUS Act and Singapore’s digital asset standards provide frameworks for cryptocurrency regulation that Taiwan may look to as it shapes its own policies. Ko has suggested that a collaborative approach between banks and VASPs, rather than a strict hierarchical structure, will foster innovation and enhance the nation’s standing in global fintech.
As the Central Bank prepares its evaluation and report by year’s end, Taiwan’s decisions will highlight its approach to financial autonomy in an increasingly digital landscape, weighing the benefits of diversifying its reserves against the risks of moving away from traditional fiat currencies.
