Taiwan Explores Adding Bitcoin to National Reserves Amid Financial Diversification Push

Market Context

As geopolitical and macro-economic risks increase — particularly in regions with export-driven economies such as Taiwan — traditional reserve asset strategies are being questioned. The move to consider Bitcoin highlights how digital assets are evolving from speculative investments into strategic tools for state-level treasury diversification.

Technical Details with Attribution

• Legislator Ko Ju‑Chun has proposed that Taiwan allocate “up to 5%” of its roughly USD 50 billion reserve to Bitcoin, equating to ~USD 2.5 billion. 
• Taiwan’s current reserve portfolio includes 423 metric tons of gold and about USD 577 billion in foreign-exchange assets. 
• The proposal emphasises Bitcoin’s decentralised, fixed-supply nature as advantages in high-volatility and geopolitically sensitive environments. 
• These discussions align with Taiwan’s broader regulatory evolution in digital-asset frameworks, as the country’s Financial Supervisory Commission is advancing institutional crypto-custody trials. 

Analyst Perspectives 

Some analysts view Taiwan’s push as a landmark signalling serious governmental engagement with cryptocurrency beyond borders and retail speculation. If realised, it could accelerate institutional and sovereign adoption of digital assets.

Nevertheless, caution is advised: Price volatility in Bitcoin, regulatory uncertainties, and the technical challenges of custody and risk management at the sovereign level remain significant. Implementation will require robust governance and operational safeguards.

Global Impact Note

Taiwan’s interest in placing Bitcoin on its balance sheet could inspire other national or sub-national entities — particularly in regions facing currency risks or export-dependence — to consider similar diversification. The move may also influence how central banks, treasury departments and global reserve managers view digital assets in strategic asset allocation.