Taiwanese Lawmaker Urges Bitcoin Inclusion in National Reserves
Amidst growing global economic uncertainty, Taiwanese legislator Ko Ju-Chun has boldly proposed the integration of Bitcoin into the nation’s reserves. This proposal, presented at the National Conference on May 9th, aims to bolster Taiwan’s financial resilience and act as a hedge against market volatility.
Ko Ju-Chun, a legislator at-large in Taiwan’s Legislative Yuan, highlighted Bitcoin’s potential during his address. He emphasized the cryptocurrency’s decentralized nature, fixed supply, and censorship resistance as key advantages in comparison to traditional reserve assets such as gold and foreign exchange reserves. This stance follows recent discussions with Samson Mow, a prominent Bitcoin advocate known for his work in El Salvador’s Bitcoin adoption.
Taiwan, heavily reliant on its export-oriented economy, experiences significant fluctuations in its New Taiwan dollar. Ko argued that diversification into Bitcoin could mitigate these risks, particularly in the face of global inflation and geopolitical tensions. He cited Taiwan’s current gold reserves (423 metric tons) and foreign exchange reserves ($577 billion) as insufficient safeguards against potential future crises. He suggested a small percentage allocation, perhaps 5% of existing reserves, as a starting point.
Ko emphasized that Bitcoin is not intended as a sole solution but rather a supplementary asset to strengthen Taiwan’s overall financial strategy. This would allow for greater flexibility and risk hedging capabilities. The legislator’s proposal echoes similar global conversations regarding Bitcoin adoption as a reserve asset, highlighting its growing consideration as a viable option for diversifying national reserves.
Taiwan’s burgeoning crypto-friendly environment, marked by recent institutional trials of crypto custody services, provides a conducive backdrop for this proposal. This contrasts sharply with Mainland China’s strict stance against cryptocurrencies. Ko’s forward-thinking initiative demonstrates Taiwan’s evolving financial strategy and its interest in leveraging cutting-edge technology to enhance its financial stability.
Related: Trump tricked into pushing XRP for crypto reserve: Report
This timely and pertinent proposal emphasizes the increasing consideration of digital assets in global financial strategies and promises to spark insightful conversations within Taiwan’s financial landscape.