Taiwan Lawmaker Proposes 5% Bitcoin Allocation to National Reserve

Taiwanese lawmaker Ko Ju-Chun has called for the region to consider adding Bitcoin to its reserve assets, citing the cryptocurrency's potential as a hedge against economic and geopolitical risks. Speaking at the National Finance Conference, Ko emphasized that Bitcoin, like gold and foreign currencies, should be recognized as a sovereign reserve asset. He argued that Bitcoin's fixed supply, decentralization, and censorship resistance make it a suitable hedge in an increasingly volatile global financial landscape.

Ko's proposal comes amid growing concerns over Taiwan’s economic exposure as an export-reliant nation. He noted that the New Taiwan dollar has faced wide fluctuations due to global inflation and tensions in the Asia-Pacific region. In moments of severe crisis or regional unrest, traditional reserve assets like bonds or even gold may not guarantee rapid liquidity or security. Bitcoin, with its cross-border, seizure-resistant design, gives us options, Ko argued.

Ko suggested that a small allocation of Bitcoin, of up to 5% of Taiwan’s $50 billion reserve, would be prudent. He stressed that it would be part of a diversified strategy, not a total shift. "I’m not saying Bitcoin is the only answer," Ko clarified. "But in a world where exchange rate risks and regional instability are increasing, it’s essential to introduce new tools that can help us build a more flexible and resilient financial strategy."

Ko's remarks coincide with Taiwan’s developing crypto regulatory environment. The region's Financial Supervisory Commission (FSC) is laying the groundwork for comprehensive virtual asset regulation. On March 25, the FSC unveiled its draft of the “Virtual Asset Service Act,” a proposed legislative framework that would regulate the crypto industry while enhancing market integrity and investor protections. The draft outlines rigorous licensing requirements for Virtual Asset Service Providers (VASPs), including standards for organizational structure, capital thresholds, and qualified personnel. It also allows local banks to issue stablecoins pegged to the New Taiwan dollar, pending FSC approval and strict compliance with issuance guidelines.

To uphold these standards, the FSC will be empowered to conduct inspections, monitor compliance, and impose penalties on non-compliant entities. The FSC’s commitment to building a secure and well-regulated crypto ecosystem extends beyond compliance. In early 2025, the agency launched a pilot program for institutional crypto custody services and approved several foreign crypto exchange-traded funds (ETFs) for professional investors. Together, these regulatory and institutional initiatives indicate Taiwan’s intent to grow into a fully fledged, regulated, and innovation-friendly cryptocurrency jurisdiction and an environment that a lawmaker like Ko believes Bitcoin can become a sovereign asset.