Taiwan Urged to Reconsider Bitcoin Reserve in War Scenario

TLDR

• A think tank has urged Taiwan to reconsider adopting a Bitcoin reserve to prepare for potential geopolitical conflict.
• The report states Bitcoin could remain accessible during a military blockade or invasion scenario involving China.
• Taiwan’s central bank previously rejected a Bitcoin reserve due to concerns about volatility, liquidity, and custody.
• The study highlights Taiwan’s heavy reliance on US dollar reserves, which make up more than 80 percent of its holdings.
• The report suggests Bitcoin could complement gold as a hedge against currency debasement and economic uncertainty.

A new policy report urges Taiwan to reassess its financial safeguards against escalating geopolitical and global economic risks. The study highlights Bitcoin as a resilient reserve asset during potential regional conflict and future crisis scenarios.

Jacob Langenkamp from the Bitcoin Policy Institute presented the proposal during a Tuesday briefing in Washington. He argued Bitcoin could ensure continuous financial access if China imposes a regional military blockade.

The report states gold reserves may become inaccessible during severe military disruption and prolonged regional conflict conditions. It also warns foreign currency holdings could face external restrictions or sanctions.

Taiwan’s central bank previously reviewed a national digital asset strategy. However, officials rejected a Bitcoin reserve, citing volatility and custody concerns.

Taiwan Bitcoin Reserve Debate Intensifies

Langenkamp stated Bitcoin offers geopolitical resilience for Taiwan during extreme emergencies. He explained that digital assets remain accessible without physical transport across borders.

According to the report, Bitcoin can complement gold as a hedge against currency debasement. The proposal highlights Taiwan’s heavy reliance on United States dollar reserves.

Taiwan holds more than 80% of its reserves in dollar-denominated assets. The report warns that rising United States debt could pressure long-term currency stability.

Langenkamp said Bitcoin adoption could strengthen Taiwan’s monetary independence during crisis periods. He emphasized institutional custody solutions could address the central bank’s earlier concerns.

National Holdings and Policy Context

Taiwan’s central bank confirmed it explored digital asset reserves before rejecting implementation plans. Officials instead identified the United States dollar as the most reliable reserve asset.

Despite rejection, Taiwan continues evaluating blockchain technology within a regulated digital asset sandbox. Authorities aim to test operational frameworks for handling state-controlled cryptocurrency reserves.

Taiwanese lawmaker Ko Ju-Chun disclosed government-owned Bitcoin holdings through social media disclosures. The Ministry of Justice controls 210 Bitcoin confiscated during criminal investigations.

The holdings currently carry an estimated value of nearly $14 million. These assets position Taiwan among the larger government Bitcoin holders globally.

Data platform BitBo does not officially list Taiwan within its national reserve rankings. However, disclosed holdings would place Taiwan seventh among countries holding Bitcoin reserves.

El Salvador ranks above Taiwan, while Finland remains below in publicly known holdings. Authorities continue monitoring digital asset developments through policy discussions and regulatory assessments.

The central bank confirmed further research will guide future decisions regarding cryptocurrency reserves. Officials reiterated that volatility, liquidity, and custody risks remain key evaluation factors.