Taiwan Eyes Bitcoin as Complementary Asset to Gold and US Dollars to Protect Against Currency Volatility

Taiwan Explores Bitcoin For National Reserves Amid Rising Dollar Dependence

Taiwan is moving closer to incorporating Bitcoin into its official reserve strategy, with the Central Bank and Executive Yuan agreeing to evaluate the feasibility of holding digital assets and piloting BTC holdings using seized cryptocurrency.

The initiative, highlighted by Bitcoin Magazine on 12 November 2025, could position Taiwan as the first Asian economy to formally study Bitcoin as part of its strategic reserves.

Could Bitcoin Offer A Hedge Against Dollar Exposure

Legislator Dr. Ju-chun Ko, a leading advocate for the initiative, has consistently highlighted the risks of heavy reliance on the US dollar.

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

He told lawmakers,

“Bitcoin’s fixed supply and decentralized nature make it an ideal diversification tool.”

Taiwan currently holds 423 metric tonnes of gold and $577 billion in foreign currency, with roughly 92% invested in US Treasury bonds, leaving the country exposed to potential currency fluctuations.

Pilot Programs Will Use Seized Bitcoin First

Under the plan, the central bank will begin by testing holdings using Bitcoin seized from law enforcement cases.

JAN3, a Bitcoin infrastructure firm led by Samson Mow, confirmed that the government will manage these assets under a new custody framework, effectively treating them as a live pilot before any broader deployment.

Mow described Taiwan’s move as “a forward-thinking step,” aligning with a growing international trend of sovereign Bitcoin adoption.

Global Precedents Influence Taiwan’s Approach

Taiwan’s interest in Bitcoin follows a wave of global adoption.

Earlier in 2025, US President Donald Trump signed an executive order creating a Strategic Bitcoin Reserve holding roughly $17 billion in forfeited BTC.

Countries such as El Salvador and Argentina have also integrated Bitcoin into reserve or fiscal strategies, using the cryptocurrency as a hedge against inflation and financial instability.

Ko referenced these examples, stating that “Taiwan cannot afford to ignore a monetary evolution already embraced by major economies.”

Bitcoin Seen As A Complementary Reserve Asset

Ko emphasised that Bitcoin would not replace gold or foreign currency holdings but serve as a complementary asset to strengthen Taiwan’s financial resilience.

The legislator has repeatedly argued that Bitcoin’s decentralised architecture, resistance to censorship, and insulation from geopolitical pressures make it suitable for hedging against systemic risks.

Regulatory Frameworks Remain A Key Focus

The Central Bank and Executive Yuan are drafting a regulatory framework to define how digital assets can be safely integrated into the nation’s treasury system.

This framework aims to ensure compliance with international financial standards while providing legal clarity for state-managed Bitcoin holdings.

Taiwan’s Financial Supervisory Commission has already permitted professional investors to access foreign Bitcoin and crypto ETFs since 2024, reflecting a progressively open stance on digital assets.

How Past Fraud Cases Shape Strategy

Taiwanese authorities’ handling of major crypto fraud cases also informs the strategy.

In August, prosecutors indicted 14 individuals in a NT$2.3 billion ($75 million) laundering operation that used fake crypto exchange franchises to defraud over 1,500 investors.

The group’s operations relied on regulatory blind spots, allowing it to collect funds under the guise of legitimate exchanges.

Confiscated assets from such cases now offer an opportunity for the government to pilot BTC holdings for strategic purposes rather than immediate liquidation.

Will Taiwan Become Asia’s First Sovereign Bitcoin Pilot

With growing debate in the Legislative Yuan and support from private Bitcoin advocates, Taiwan could soon become the first Asian nation to test Bitcoin at the sovereign level.

The central bank’s feasibility study and pilot programs will determine whether digital assets can diversify reserves, reduce dependence on traditional currencies, and increase financial resilience amid a shifting global economy.

Momentum Builds As Digital Assets Gain Global Recognition

The move coincides with a broader global trend.

The US, several states, and other countries have begun integrating Bitcoin into official reserves.

Analysts at Deutsche Bank project that by 2030, Bitcoin could achieve reserve asset status comparable to gold, a forecast that strengthens arguments for adoption by central banks worldwide.

Taiwan’s ongoing deliberations reflect both the promise and the complexity of managing digital assets within traditional financial systems.

Regulatory Delays Highlight Challenges For Adoption

Despite progress, Taiwan faces regulatory hurdles.

Ko has criticised delays in the Virtual Asset Service Provider law, warning that uncertainty could hinder the growth of the digital finance sector.

Nine cryptocurrency platforms are currently regulated in Taiwan, but broader legislation is needed to ensure robust oversight and support for state-level Bitcoin management.

Could Confiscated Bitcoin Become A National Asset

Ko has called for a full inventory of government-held Bitcoin, including seized cryptocurrency, for potential strategic use.

In 2024, Taiwanese authorities confiscated around $146 million in crypto through major fraud investigations.

Lawmakers argue that holding these assets could provide the foundation for a digital reserve, allowing Taiwan to participate in a rapidly evolving monetary landscape.

Taiwan Looks To Balance Tradition With Innovation

While the US dollar remains the dominant global settlement currency, Premier Cho Jung-tai has indicated openness to evaluating emerging digital assets.

Central Bank Governor Yang Chin-long is expected to present a balanced report on Bitcoin reserve strategy by the end of 2025, highlighting Taiwan’s cautious but forward-looking approach to financial diversification.