Taiwanese Lawmaker Pushes for Bitcoin in National Reserves

A bold proposal has emerged from Taiwan’s political landscape: the inclusion of Bitcoin in the nation’s reserve strategy. Legislator Ko Ju-Chun recently urged the government to diversify its reserves by incorporating Bitcoin alongside gold and foreign currencies, citing its potential to safeguard against economic shocks.

During a national conference and subsequent X posts, Ju-Chun emphasized Bitcoin’s resilience against global economic fluctuations. He argued that even a small allocation – a suggested 5% of a $50 billion reserve, or roughly $2.5 billion – could significantly enhance the financial system’s robustness. This move, he clarified, wouldn’t replace existing reserves but act as a complementary layer of protection.

Ju-Chun’s proposal follows a meeting with Samson Mow, CEO of Jan3, a firm actively promoting Bitcoin adoption globally. Jan3 has publicly championed the strategic inclusion of Bitcoin in national reserves as a hedge against volatile fiat currencies. Discussions between Ju-Chun and Mow reportedly covered technical aspects, security protocols, and risk mitigation strategies for Bitcoin acquisition and storage.

Taiwan currently holds 423 metric tons of gold and approximately $577 billion in foreign exchange reserves. Ju-Chun highlighted the New Taiwan Dollar’s past volatility, attributing it to global price increases and regional tensions. He contrasted this with Bitcoin’s proven ability to withstand external pressures, maintaining accessibility even when other assets falter.

While acknowledging potential risks associated with Bitcoin’s price fluctuations, Ju-Chun called for careful consideration of central bank procedures for acquiring, securing, and insuring Bitcoin holdings. He also stressed the importance of establishing clear regulatory frameworks to prevent economic spillover in the event of losses.

This initiative echoes similar efforts in other regions, including New Hampshire’s recent Bitcoin reserve approval. Ju-Chun expressed hope that Taiwan’s adoption could spearhead a similar trend across Asia, positioning the nation as a leader in innovative reserve management strategies. The proposal, however, is certain to spark ongoing debate about the legal and logistical considerations of incorporating a cryptocurrency into national reserves.