TAIPEI — Taiwanese lawmaker Ko Ju-chun, a member of the Legislative Yuan from the Kuomintang (KMT) party, is calling on the government to establish a strategic Bitcoin reserve, emphasizing its potential role in bolstering national security and economic resilience.
In a recent post on X (formerly Twitter), Ko argued that Bitcoin and other decentralized digital assets could provide Taiwan with innovative financial tools to safeguard its economy in an increasingly unpredictable global landscape. He warned that without decisive action, Taiwan risks falling behind other crypto-forward nations.
Ko Calls for Bold Crypto Strategy
Ko proposed that Taiwan allocate up to 5% of its $50 billion foreign reserve to Bitcoin, suggesting this move would align the country with global innovation trends. His comments come shortly after New Hampshire became the first U.S. state to legalize cryptocurrency investments by its government—an event he believes Taiwan should learn from.
"This is not just about technology; it’s about securing Taiwan’s financial sovereignty in a shifting geopolitical environment," Ko said.
Bitcoin Reserves Gaining Global Momentum
The idea of national Bitcoin reserves is gaining traction globally. Countries are exploring Bitcoin as a hedge against currency devaluation and a buffer in times of economic uncertainty. However, some critics caution about the risks of volatility, cybersecurity, and regulatory hurdles.
Taiwan has already shown interest in blockchain technology and digital currency initiatives, although authorities have traditionally been cautious about broader crypto adoption due to concerns over regulation and investor safety.
Geopolitical Factors in Play
Geopolitics could further influence Taiwan's crypto direction. Grayscale, a major crypto asset manager, recently noted that former U.S. President Donald Trump’s pro-crypto stance may pressure China to reassess its rigid anti-crypto policies—a development that could indirectly affect Taiwan.
While China permits the possession of digital assets, it bans most activities like crypto trading and mining. Still, under the “one country, two systems” framework, Hong Kong has seen more flexible crypto regulations, signaling possible changes ahead.
In February, China's Supreme Court reportedly held discussions on the legal treatment of digital assets, indicating that regulatory attitudes might be evolving.
Speculations on China's Strategic Crypto Move
Crypto advocate David Bailey, known for his role in influencing Trump’s crypto policies, speculated that China could be preparing its own Bitcoin reserve strategy. He revealed that confidential discussions on the matter may have taken place since the 2024 U.S. elections.
As of late April, the United States holds 198,012 Bitcoins valued at approximately $18.3 billion, while China reportedly holds 190,000 Bitcoins, worth about $17.6 billion.
Ko’s proposal signals a growing sentiment among regional leaders: crypto isn’t just the future of finance—it’s the future of national strategy.
