Taiwan Politician Proposes 5% Bitcoin Allocation to National Reserve

A Taiwanese politician has proposed that the government include Bitcoin in its national reserve strategy. The politician, Ju-Chun, made this suggestion during the National Conference and further amplified his message on a social media platform. His primary goal is to incorporate Bitcoin alongside gold and foreign currency to safeguard against significant economic downturns.

Ju-Chun believes that Bitcoin has the resilience to withstand large fluctuations in the global economy. He argued that even a small portion of Bitcoin in Taiwan’s asset portfolio could enhance the financial system's robustness. He also reached out to crypto enthusiasts, sharing his speech and seeking their feedback. Ju-Chun clarified that this move would not replace existing reserves but rather complement them.

Last week, Ju-Chun met with Samson Mow, the CEO of Jan3, a firm focused on extensive Bitcoin adoption. Jan3 emphasized the importance of countries preparing against currency fluctuations by holding Bitcoin. Mow discussed with Ju-Chun the technical barriers, security requirements, and how Taiwan could purchase and hold BTC without risks.

Taiwan currently holds 423 metric tons of gold and approximately $577 billion in foreign exchange assets. Ju-Chun noted that the New Taiwan Dollar has experienced significant volatility, attributing this to higher global prices and regional tensions. He argued that Bitcoin, having demonstrated its ability to withstand external pressures for over 15 years, deserves a place in the national reserve.

Ju-Chun proposed that Taiwan allocate up to 5% of its $50 billion reserve to Bitcoin, which amounts to approximately $2.5 billion. He cited New Hampshire's recent approval of a similar action and referenced a directive by former US President Donald Trump to create a US Bitcoin reserve. Ju-Chun suggested that Taiwan could lead Asia in this regard if it acts promptly.

Some experts have raised concerns about Bitcoin's volatility, which can fluctuate by 10 to 20% within a week. Additionally, there are legal considerations regarding the holding of digital assets at the state level. Ju-Chun addressed these issues, stating that they can be managed. He called on lawmakers to explore how central banks could buy, hold, and insure Bitcoin, and to establish clear rules to prevent any losses from affecting the broader economy.