Taiwan makes headlines with a move that will impact the global financial system. Member of the Legislative Assembly Dr. Ko Ju-Chung officially proposed to the Prime Minister and the Central Bank Governor to allocate a portion of the country's foreign exchange reserves totaling $602 billion to Bitcoin as a national strategic asset. This move elevates Bitcoin from a theoretical topic to a serious consideration in government policy at the highest level.

The strategic reality behind the proposal: breaking dependence on the dollar
This proposal is not a whim but a direct response to tangible weakness. A report prepared by the Bitcoin Policy Institute (BPI) presented by Dr. Ko highlights a critical risk: over 80% of Taiwan’s $602 billion reserves are tied to dollar-denominated assets. This concentration makes the country highly vulnerable to currency devaluation or geopolitical shocks.
The reason for the proposal is very clear:
• Geopolitical hedging: Bitcoin offers unique protection through its decentralized nature, independent of any sovereign monetary policy or government control. In an extreme scenario, even if physical gold is banned or access to dollar reserves is restricted, Bitcoin remains fully accessible.
• Resistance to bans: As BPI researcher Jacob Langenkamp emphasizes, Bitcoin requires no physical transfer and cannot be frozen, confiscated, or controlled by any country. This is an invaluable strategic advantage for a country like Taiwan facing unique geopolitical pressures.
• Alignment with the global trend of reducing reliance on the dollar: This step is seen as part of the “de-dollarization” movement, similar to what we saw before Bitcoin surged to $69,000 in 2021, as many countries quietly move away from dependence on the dollar.
The Central Bank’s stance is shifting: from doubt to discovery
Taiwan’s Central Bank (CBC) has shown a notable evolution in its approach to Bitcoin. The bank had considered Bitcoin as a reserve asset by 2025 but concluded it was unsuitable due to volatility, liquidity, and custody risks. However, despite this assessment, it also committed to creating a digital asset fund using 210 held Bitcoins. Dr. Ko’s proposal takes this process a step further, demanding the central bank submit a new report on stablecoins and broader digital assets within a month. This indicates a cautious but deliberate shift toward integrating digital assets.
Taiwan is not alone: the Bitcoin race among nations accelerates
This move signals the start of a global race for countries to adopt Bitcoin. Other prominent examples include:
• United States: The government currently holds about 328,372 Bitcoins (roughly $25.4 billion), making it the largest known sovereign holder of Bitcoin worldwide. Eric Trump announced at Bitcoin 2026 that the U.S. will not sell these assets. Meanwhile, the ARMA bill (American Reserve Asset Modernization Act), which aims to formalize a strategic Bitcoin reserve, is awaiting Senate Banking Committee review and is expected to be on the agenda in May. If passed, the first official Treasury purchase is expected in Q4 2026.
• Canada: Prime Minister Mark Carney announced the “Canada Strong Fund,” the country’s first national sovereign wealth fund with an initial capital of $18 billion. Although it does not yet include an official Bitcoin allocation, the announcement has sparked intense speculation among crypto investors that Canada may follow global precedents.
• Bhutan and El Salvador: Bhutan is known for mining Bitcoin using hydroelectric resources. However, a Bitcoin transfer worth $287 million occurred in early May 2026 from an account linked to Druk Holding in Bhutan. Total Bitcoin sales in the country in 2026 exceeded $200 million, reducing holdings by 75% from their peak. El Salvador, despite tensions with the IMF, maintained its dollar-cost averaging strategy, accumulating 7,586 Bitcoins and starting 2026 with a reserve valued at $800 million. However, market volatility caused this value to drop to $504 million in February.
In Q1, sovereign wealth funds invested over $1 billion in Bitcoin ETFs. This indicates that the largest and longest-term investors now view Bitcoin not as a speculative asset but as a strategic part of their portfolios.
Market and investor implications
Taiwan’s move is more than an isolated incident. It is one of the latest and strongest signals of a structural shift in global reserve management. Even a small allocation of 1-2% of a $602 billion reserve could generate significant new demand for Bitcoin in trading volume and ETF flows. Taiwan’s actions set a strong precedent for other countries, especially in Asia, potentially reinforcing the “digital gold” narrative for Bitcoin and prompting a structural reevaluation of its price.
Conclusion: the future of reserves is becoming digital
Taiwan’s decision to consider Bitcoin as a reserve asset indicates that global finance has entered an irreversible phase. In a world where traditional reserve assets are vulnerable to geopolitical risks, Bitcoin’s uncontrollability, confiscation resistance, and borderless nature cement its permanent place in long-term strategic planning.