Taiwan Debates Bitcoin as National Reserve Asset

The debate in Taiwan’s Legislative Yuan represents a significant shift in how policymakers view digital assets. During Tuesday’s general financial interpellation, Taiwan People’s Party legislator Ge Rujun argued that “virtual assets are no longer just speculative commodities, but a new battleground for national security and financial sovereignty.” This statement underscores the evolving perception of Bitcoin from a speculative investment to a potential tool for economic sovereignty.

Ge Rujun directly challenged central bank Governor Yang Chin-long’s position that “2030 is still far,” questioning whether Taiwan can afford to wait given the rapid global changes in digital asset adoption. The lawmaker criticized the administration’s approach as “overly cautious, which is tantamount to laziness,” emphasizing the urgency of updating Bitcoin assessments to reflect current risks rather than relying on outdated views of digital assets.

The legislative pressure culminated in Premier Cho Jung-tai committing to publish both an updated Bitcoin-reserve assessment and a complete inventory report by the end of this year. This commitment represents a concrete step toward potentially incorporating Bitcoin into Taiwan’s strategic reserves, marking a departure from the government’s previously cautious stance.

Taiwan’s foreign-exchange reserves stood at approximately $600 billion as of October’s end, with central bank data revealing that more than 80% of these reserves are invested in U.S. Treasury bonds. This heavy concentration in U.S. debt creates significant exposure to American monetary policy and economic conditions, prompting lawmakers to seek diversification through alternative assets like Bitcoin.

The debate centers on Taiwan’s dual dependency—what Bonnie Chang, host of the largest Chinese-language Bitcoin and crypto YouTube channel, describes as being “effectively long the U.S. dollar through its reserve holdings, and long China’s economic cycle through trade and supply-chain reliance.” This combination creates what Chang calls “a distinct kind of concentration risk for an economy that sits in a sensitive geopolitical position.”

Ge Rujun specifically highlighted the need for a full inventory of confiscated Bitcoin before deciding whether these assets should be retained or sold. The lawmaker noted that if the treasury “is not short of funds at the moment, these virtual currencies can be retained for now,” suggesting a strategic approach to managing existing digital asset holdings while evaluating their long-term reserve potential.

The Taiwanese debate aligns with global financial trends, particularly the September projection from Deutsche Bank Research Institute that found “room for both gold and Bitcoin to coexist on central bank balance sheets” by 2030. This international perspective adds weight to Taiwanese lawmakers’ arguments for early adoption rather than waiting until the end of the decade.

According to Bonnie Chang, the discussion “goes far beyond Bitcoin itself” and reflects Taiwan’s broader reassessment of its position in global technology and monetary systems. She notes that Taiwan’s decades as the “hardware backbone of the world” have positioned its legislature to reconsider “where it fits in the next phase of global technology and monetary design” as the center of gravity shifts from hardware to software, AI, and digital financial infrastructure.

Chang also highlighted the public sentiment challenges, noting that any mention of crypto in Taiwan “tends to trigger strong feelings” due to past trauma from scams and high-profile fraud cases. She emphasized the need for financial education, warning that “without it, conversations that belong to the policy arena can easily get pulled back into public fear,” potentially hindering rational policy discussion about digital asset adoption.