Blab Crypto
Taiwan Legislator Proposes Bitcoin Allocation for National Reserves
On April 29, 2026, Dr. Ko Ju‑Chun, a member of Taiwan’s Legislative Yuan, delivered a report from the Bitcoin Policy Institute (BPI) to Premier Cho Jung‑tai and Central Bank Governor Yang Chin‑long. The BPI’s recommendation is straightforward: a modest slice—between 1 % and 5 %—of Taiwan’s $602 billion foreign‑exchange reserve could be earmarked for Bitcoin.
The suggestion comes amid a widening debate in Taipei about diversifying the country’s reserve holdings. The BPI argues that even a small Bitcoin allocation would introduce diversification, protect against seizure, and serve as a hedge against inflationary pressures linked to the U.S. dollar. Taiwan’s reserves are heavily concentrated in U.S. Treasuries and other dollar‑denominated assets, a concentration that the report notes could expose the country to geopolitical strain.
Seizure resistance is a central point. With ongoing territorial tensions with the People’s Republic of China, assets kept in foreign vaults face counterparty risk; if hostilities flare, those holdings could theoretically be frozen or otherwise restricted. Bitcoin, held under robust custody protocols, would sidestep that risk because it is not bound to any sovereign jurisdiction.
The BPI also highlights Bitcoin’s scarcity as a potential inflation hedge. With a capped supply of 21 million coins, Bitcoin’s limited availability could act as a store of value independent of fiat currency fluctuations.
In late 2025, the Central Bank of Taiwan (CBC) conducted its own assessment of Bitcoin as a reserve asset. The CBC’s evaluation gave a firm pass, yet it cited concerns over volatility, liquidity constraints, and custody risks. In a notable policy shift, the CBC established a digital‑asset sandbox that now holds 210 bitcoins seized from illicit activities, moving away from its earlier classification of Bitcoin as a speculative commodity.
Following the BPI presentation, Dr. Ko requested a follow‑up report that would examine stablecoins and their broader implications for digital‑asset reserves. The BPI is slated to deliver that report within a month.
Taiwan is also advancing regulatory frameworks for digital assets. The Virtual Assets Service Act and accompanying stablecoin regulations are progressing through the Legislative Yuan, aiming to create a coherent legal structure for digital‑asset services and potentially easing the path for future reserve allocations.
From a market perspective, Taiwan’s $602 billion reserve pool means that a 1 % allocation would translate into roughly $6 billion of Bitcoin purchases. Analysts note that the digital‑asset sandbox and the forthcoming stablecoin report will be key indicators of how the government evaluates risk and regulatory compliance.
The proposal fits into a broader trend of governments exploring cryptocurrencies as strategic assets. While Taiwan has not yet adopted Bitcoin as legal tender, the BPI’s report signals a willingness to consider it within the official reserve framework.
The outcome remains uncertain. No official statement has yet been issued by Premier Cho or Governor Yang regarding the recommendation. The next steps will likely involve further analysis of custody solutions, liquidity provisions, and regulatory alignment.
In summary, Taiwan’s legislative session on April 29 marked a significant policy discussion about incorporating Bitcoin into national reserves. The proposal centers on diversification, seizure resistance, and inflation hedging, and follows the CBC’s 2025 evaluation that rejected Bitcoin due to volatility and custody concerns, while also acknowledging the CBC’s sandbox initiative. The forthcoming stablecoin report and the Virtual Assets Service Act will shape the next phase of Taiwan’s digital‑asset policy. The situation remains under observation, with key developments expected in the coming months as Taiwan evaluates the feasibility of adding Bitcoin to its reserve portfolio.
The suggestion comes amid a widening debate in Taipei about diversifying the country’s reserve holdings. The BPI argues that even a small Bitcoin allocation would introduce diversification, protect against seizure, and serve as a hedge against inflationary pressures linked to the U.S. dollar. Taiwan’s reserves are heavily concentrated in U.S. Treasuries and other dollar‑denominated assets, a concentration that the report notes could expose the country to geopolitical strain.
Seizure resistance is a central point. With ongoing territorial tensions with the People’s Republic of China, assets kept in foreign vaults face counterparty risk; if hostilities flare, those holdings could theoretically be frozen or otherwise restricted. Bitcoin, held under robust custody protocols, would sidestep that risk because it is not bound to any sovereign jurisdiction.
The BPI also highlights Bitcoin’s scarcity as a potential inflation hedge. With a capped supply of 21 million coins, Bitcoin’s limited availability could act as a store of value independent of fiat currency fluctuations.
In late 2025, the Central Bank of Taiwan (CBC) conducted its own assessment of Bitcoin as a reserve asset. The CBC’s evaluation gave a firm pass, yet it cited concerns over volatility, liquidity constraints, and custody risks. In a notable policy shift, the CBC established a digital‑asset sandbox that now holds 210 bitcoins seized from illicit activities, moving away from its earlier classification of Bitcoin as a speculative commodity.
Following the BPI presentation, Dr. Ko requested a follow‑up report that would examine stablecoins and their broader implications for digital‑asset reserves. The BPI is slated to deliver that report within a month.
Taiwan is also advancing regulatory frameworks for digital assets. The Virtual Assets Service Act and accompanying stablecoin regulations are progressing through the Legislative Yuan, aiming to create a coherent legal structure for digital‑asset services and potentially easing the path for future reserve allocations.
From a market perspective, Taiwan’s $602 billion reserve pool means that a 1 % allocation would translate into roughly $6 billion of Bitcoin purchases. Analysts note that the digital‑asset sandbox and the forthcoming stablecoin report will be key indicators of how the government evaluates risk and regulatory compliance.
The proposal fits into a broader trend of governments exploring cryptocurrencies as strategic assets. While Taiwan has not yet adopted Bitcoin as legal tender, the BPI’s report signals a willingness to consider it within the official reserve framework.
The outcome remains uncertain. No official statement has yet been issued by Premier Cho or Governor Yang regarding the recommendation. The next steps will likely involve further analysis of custody solutions, liquidity provisions, and regulatory alignment.
In summary, Taiwan’s legislative session on April 29 marked a significant policy discussion about incorporating Bitcoin into national reserves. The proposal centers on diversification, seizure resistance, and inflation hedging, and follows the CBC’s 2025 evaluation that rejected Bitcoin due to volatility and custody concerns, while also acknowledging the CBC’s sandbox initiative. The forthcoming stablecoin report and the Virtual Assets Service Act will shape the next phase of Taiwan’s digital‑asset policy. The situation remains under observation, with key developments expected in the coming months as Taiwan evaluates the feasibility of adding Bitcoin to its reserve portfolio.
