Taiwan Eyes Bitcoin Reserve From $602B FX War Chest

TLDR

Table of Contents

Taiwan may study Bitcoin as part of its $602 billion foreign exchange reserve strategy.
Dr. Ko Ju-Chun gave BPI’s Bitcoin reserve report to top Taiwan officials.
The central bank was asked to review stablecoins and digital asset reserves.
BPI said Bitcoin may help Taiwan manage reserve and geopolitical risks.
Taiwan’s central bank had earlier raised concerns over Bitcoin’s price swings.

Taiwan lawmaker Dr. Ko Ju-Chun has urged officials to study Bitcoin as a reserve asset. The proposal centers on Taiwan’s $602 billion foreign exchange reserves. The move came during a Legislative Yuan session on April 29.

Bitcoin Reserve Proposal Reaches Taiwan Leaders

Ko presented a Bitcoin Policy Institute report to Premier Cho Jung-tai. He also gave it to central bank Governor Yang Chin-long. The session placed Bitcoin reserves before key decision makers.

Ko asked the executive branch to review a possible Bitcoin allocation. He also requested a new central bank report within one month. The report would cover stablecoins and wider digital asset reserves.

Taiwan Lawmaker Calls for Bitcoin Reserve Using Foreign Exchange Reserves
According to the Bitcoin Policy Institute (BPI), Taiwanese legislator Dr. Ko Ju-Chun delivered BPI’s report on establishing a Bitcoin reserve for Taiwan to Premier Cho Jung-tai and Taiwan central bank… pic.twitter.com/HNLRiWGqVl
— Wu Blockchain (@WuBlockchain) May 2, 2026

Taiwan holds one of the world’s large reserve pools. Much of it is tied to U.S. dollar assets. Supporters say this creates risk during market stress or political tension.

BPI Report Cites Reserve Risks

The BPI report was written by Jacob Langenkamp. It was published in March 2026. The paper reviews trade, economic, and security reasons for holding Bitcoin.

The report says more than 80% of Taiwan’s reserves are in dollar assets. It argues that this may expose Taiwan to currency loss. It also points to possible limits during a crisis.

Langenkamp said, “In a scenario where physical gold is stranded and dollar reserves face restrictions, Bitcoin remains fully accessible without physical transport.” The report says Bitcoin can be stored and moved without a bank.

Central Bank Asked to Review Digital Assets

Taiwan’s central bank studied Bitcoin in late 2025. It found Bitcoin unsuitable at that time. The bank cited price swings, liquidity issues, and custody risks.

However, the central bank agreed to test digital assets. It planned a sandbox using 210 seized bitcoin. That test may help officials study storage and controls.

Ko had raised the BPI report with Governor Yang on March 30. The April 29 session was broader. It was the first formal delivery to the premier.

Policy Debate Moves Ahead

Sam Lyman of BPI said, “Dr. Ko’s decision to present this report directly to the premier and central bank governor demonstrates the seriousness with which Taiwan’s lawmakers are evaluating Bitcoin as a strategic asset.”

BPI said its role is to educate officials and the public. The group supports policy research on Bitcoin. Its Taiwan report frames Bitcoin as a possible reserve tool.

No final decision has been announced. The request now puts pressure on the central bank to respond. Taiwan’s next report may shape how officials treat Bitcoin, stablecoins, and digital reserves.