Taiwan Explores Bitcoin Reserves: 423 Tonnes Gold & $577B FX Holdings

Taiwan is moving closer to integrating Bitcoin into its national reserve strategy, signaling a significant shift in Asia’s financial...

Quick overview

  • Taiwan is considering integrating Bitcoin into its national reserve strategy, marking a significant shift in Asia's financial landscape.
  • Legislator Dr. Ju-chun Ko advocates for Bitcoin as a hedge against overreliance on the US dollar, emphasizing its decentralized nature.
  • Taiwan currently holds substantial gold and foreign exchange reserves, with Bitcoin potentially serving as a complementary asset.
  • Despite the push for crypto adoption, Taiwan faces challenges, including recent dismantling of a major crypto laundering operation.

Taiwan is moving closer to integrating Bitcoin into its national reserve strategy, signaling a significant shift in Asia’s financial landscape. The Executive Yuan and Central Bank have agreed to assess Bitcoin as a strategic asset, exploring pilot holdings using seized BTC currently awaiting auction.

Legislator Dr. Ju-chun Ko, a vocal advocate for financial diversification, highlighted risks associated with overreliance on the US dollar. “Bitcoin offers a unique hedge due to its decentralized and fixed-supply nature,” Ko told lawmakers, emphasizing its independence from conventional monetary policy.

Currently, Taiwan holds 423 metric tonnes of gold and $577 billion in foreign exchange reserves, with roughly 92% allocated to US Treasury bonds. Bitcoin, if added, would serve as a complementary asset, enhancing resilience rather than replacing traditional reserves.

Global Precedents Support Bitcoin Integration

Taiwan’s consideration of Bitcoin aligns with emerging international trends. In March 2025, the US established a $17 billion Strategic Bitcoin Reserve, absorbing forfeited BTC. Likewise, countries like El Salvador and Argentina have integrated Bitcoin into fiscal or reserve frameworks, demonstrating its utility as a hedge against inflation and banking instability.

The Financial Supervisory Commission (FSC) in Taiwan has also supported crypto adoption, allowing professional investors to access foreign Bitcoin and crypto ETFs since 2024. Feasibility studies and pilot programs with seized Bitcoin are expected before any broader adoption occurs.

Key Points on Global Trends:

  • US Strategic Bitcoin Reserve: $17B in forfeited BTC
  • El Salvador and Argentina: National-level Bitcoin adoption
  • Taiwan FSC: Professional investors can access Bitcoin ETFs

Taiwan’s Crypto Challenges Highlight Risk

While adoption discussions gain momentum, Taiwan has faced significant crypto-related risks. In August, authorities dismantled the nation’s largest crypto laundering operation, indicting 14 individuals for a $75 million fraud affecting over 1,500 investors.

The scheme, orchestrated by Shi Qiren, ran over 40 fake exchange storefronts, collecting investor funds and funneling them overseas. Prosecutors seized assets worth NT$100 million and described the operation as “systematic fraud” exploiting regulatory gaps.

These incidents underscore the importance of robust oversight as Taiwan evaluates Bitcoin for reserves, balancing innovation with security and investor protection.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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