Taiwan Considers Bitcoin Reserve Strategy Amid Rising Geopolitical Risks

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• Taiwan’s government has officially revealed an interest in establishing a Bitcoin reserve.

• The Bitcoin Policy Institute’s report urges the executive to consider allocating a part of the $602 billion in foreign reserves in BTC.

According to a new report, Taiwan could be the latest Asian country to establish a Bitcoin reserve. The Bitcoin Policy Institute (BPI) has revealed that on April 29, Taiwanese legislator Dr. Ko Ju-Chun delivered BPI’s report on establishing a Bitcoin reserve to Premier Cho Jung-tai and Taiwan central bank Governor Yang Chin-long during a formal Legislative Yuan session.

The legislator is urging the government to allocate a part of its $602 billion in foreign reserves to Bitcoin. The report argues that the county’s reliance on USD-denominated assets is risky during a crisis.

The Taiwanese government first evaluated Bitcoin as a strategic reserve asset in 2025. At the time, it concluded that it was unsuitable due to volatility, custody concerns, and liquidity. This marks the first time the report has reached the country’s premier, who is the head of government.

Why Taiwan Needs Bitcoin (BTC)

Bitcoin provides unique advantages such as independence from any sovereign monetary policy, resistance to seizure in case of a blockade, and accessibility without physical transport, notes the report.

The report comes at a time when there are rising geopolitical risks. Taiwan, in particular, has been facing aggression from China. As recently as Friday, Taiwan officials raised concerns after China told the U.S. government that self-governed Taiwan was the biggest risk to U.S.-China relations.

China believes that Taiwan is a breakaway province that needs to be taken back to China, even by force. Over the years, the Chinese military has been holding military drills over the island, threatening to take it back. An island, Taiwan, could face a blockade from China in the future. Similarly, if the U.S. were to change its political policies in support of China, this would leave Taiwan in a financial and political crisis.

BPI Fellow Jacob Langenkamp, who authored the report, noted:

“Taiwan faces a unique convergence of geopolitical risk and reserve concentration that makes the case for Bitcoin reserves especially compelling,

In a scenario where physical gold is stranded, and dollar reserves face restrictions, Bitcoin remains fully accessible without physical transport.”

The executive branch has further directed that the central bank prepare a report on stablecoins and broader digital assets within one month. This suggests that the country could be open to adopting other coins that are suitable for the national reserve.

As ETHNews reported, Bitcoin being added into sovereign reserves will be one of the key drivers to reach the $1 million price predicted by Strategy’s Michael Saylor.

Taiwan joins a growing list of countries in Asia holding Bitcoin. These include Bhutan, Kazakhstan, Pakistan, and China, which holds one of the biggest stashes in the world.

Bitcoin (BTC) Price Near $80,000

At the time of writing, BTC is trading for $78,300 after a 2% rally in the past 24 hours. The coin looks set to retest the $79,000 resistance again.

BTC has been facing immense pressure at this position, which is leading to a rejection and breakdown. If it can break it, Bitcoin bulls could take charge and drive a short-term rally.

In a recent post, technical analyst Ali Charts has warned that BTC has yet to find its bottom based on MVRV Pricing Bands. The analyst warns that the on-chain analytical tool, which has been accurate since 2010, points to a $43,316 bottom.

MVRV Pricing Bands remain one of the most reliable tools for identifying cycle extremes. Historically, Bitcoin $BTC has found its definitive bottom between the 1.0 and 0.8 pricing bands—the zones where the market is trading at or below its aggregate cost basis.

Since 2010, every… https://t.co/arxxFtxliV pic.twitter.com/SzAoZwQnUJ

— Ali Charts (@alicharts) May 1, 2026