Taiwan's government has initiated a formal evaluation of Bitcoin as a strategic reserve asset. The Executive Yuan and Central Bank have agreed to assess the digital currency's potential role in the nation's financial infrastructure.
The proposal includes pilot programs using confiscated Bitcoin currently held by authorities. These holdings would otherwise be sold at auction under standard asset seizure protocols.
Legislator Dr Ju-chun Ko leads the initiative. JAN3 CEO Samson Mow, whose firm specialises in Bitcoin infrastructure, supports the effort. Bitcoin Magazine confirmed the development as legislative discussions continue.
Dollar Dependence Drives Reform Push
Taiwan maintains $577 billion in foreign exchange reserves. Approximately 92% consists of US Treasury bonds. The country also holds 423 metric tonnes of gold.
Dr Ko argues this concentration creates vulnerability. The New Taiwan Dollar has experienced single-day fluctuations of 5%. Global inflation and geopolitical tensions add pressure to existing reserve strategies.
Bitcoin would complement rather than replace traditional assets. Dr Ko emphasised its decentralised structure and fixed supply as key advantages. The digital asset operates independently of central bank monetary policy.
The proposal addresses growing concerns about currency volatility and inflation hedging. Taiwan's heavy reliance on dollar-denominated assets limits diversification options during economic stress.
International precedents exist for the adoption of sovereign Bitcoin. US President Donald Trump signed an executive order in March 2025 establishing a Strategic Bitcoin Reserve. The initiative absorbed approximately $17 billion in forfeited cryptocurrency.
El Salvador and Argentina have implemented frameworks that integrate Bitcoin into their fiscal operations. Both nations cited inflation protection and banking system instability as motivating factors.
Taiwan's Financial Supervisory Commission authorized professional investors to purchase foreign Bitcoin and cryptocurrency exchange-traded funds in 2024. This marked a significant shift in the nation's approach to digital assets.
The central bank will conduct feasibility studies before any implementation. Pilot programs using seized Bitcoin will test operational procedures and risk management protocols.
No timeline has been announced for broader adoption. Authorities plan a methodical evaluation of technical requirements and regulatory safeguards.
The move represents one of Asia's most substantial government-level explorations of Bitcoin integration. Regional financial centres watch Taiwan's approach as other jurisdictions consider similar measures.
Money Laundering Case Highlights Enforcement Needs
Taiwan's cryptocurrency sector faces regulatory challenges despite progressive policies. Prosecutors indicted 14 individuals in August for operating an NT$2.3 billion fraud scheme.
The operation defrauded over 1,500 victims through fake crypto exchange franchises. Ring leader Shi Qiren established more than 40 storefronts under names such as CoinW and BiXiang Technology.
The group falsely claimed approval from the Financial Supervisory Commission. Franchise operators collected fees and used deposit machines to simulate legitimate exchange functions. Investor funds transferred to offshore cryptocurrency accounts.
Authorities seized cash, digital assets, and luxury items valued at more than NT$100 million. Shi faces up to 25 years imprisonment on fraud, money laundering, and organized crime charges.
Prosecutors described the scheme as a systematic exploitation of regulatory gaps. Taiwan's growing interest in cryptocurrency, combined with limited enforcement, has created opportunities for fraudulent operations.
