Strategic Thinking Amid TWD Appreciation: Why Taiwan Needs Bitcoin Reserves

Strategic Thinking Amid TWD Appreciation: Why Taiwan Needs Bitcoin Reserves

Today, the US dollar depreciated against the New Taiwan Dollar (TWD), with the TWD appreciating to 30.77 per USD. This exchange rate shift poses significant challenges for Taiwan's economy. For an export-driven economy, TWD appreciation means higher prices for exported goods, reduced international competitiveness, and squeezed profit margins for exporters. This not only affects business operations but may also impact the job market and overall economic growth. While a stronger TWD makes imports cheaper in the short term, for an export-oriented country like Taiwan, the negative effects far outweigh the short-term benefits. Amid global economic turbulence, Taiwan urgently needs new strategies to safeguard economic stability and national security.

The Need for Strategic Bitcoin Reserves

Against this backdrop, I (Legislator Dr. Ju-Chun Ko) have repeatedly questioned the FSC and Central Bank, emphasizing the importance of introducing strategic Bitcoin reserves. As a decentralized digital asset, Bitcoin is not controlled by any single country or central bank. It is inflation-resistant and serves as a hedge, providing extra protection during traditional financial market volatility. Especially now, as TWD appreciation intensifies economic pressure, Bitcoin's independence and value-preserving features are even more crucial. Including it in national reserves can diversify risk and enhance Taiwan's autonomy and adaptability in the global financial system.

Legislative Yuan Interpellation Video

Legislative Yuan Interpellation Video (Click to watch on Instagram)

Click to watch Legislator Ko's interpellation on strategic Bitcoin reserves in the Legislative Yuan.

Progress in Taiwan's Financial Policy

It is worth mentioning that I successfully pushed for the FSC to allow Bitcoin ETF sub-brokerage, giving Taiwanese investors the opportunity to participate in this emerging asset class. The FSC was initially hesitant due to high volatility and risk, but as international trends shifted—including the IMF gradually recognizing Bitcoin's financial function and the global proliferation of Bitcoin ETFs—Taiwan finally took its first step. This achievement proves that forward-looking financial policy can open new opportunities for both the public and the nation.

Exclusive Interview: Is Bitcoin Strategic Reserve a National Security Issue? Legislator Ko: Taiwan Can't Rely Solely on USD and Gold for Financial Resilience

Step into Legislator Ko's office and the first thing you'll notice is not paperwork or meeting records, but a collection of AI-generated abstract art and NFT pieces. The walls are adorned with works by AI artist Tom White, limited edition prints authorized by the CryptoPunks team, and autographed pieces by Taiwan's pioneering generative artist Hsin-Jen Wang—making the space feel more like a tech-art studio than a typical legislator's office. In this interview, Ko discusses why Bitcoin reserves are a matter of national security and why Taiwan must look beyond just USD and gold for financial resilience.

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International Experience and Taiwan's Future

Internationally, the Arizona House of Representatives recently passed a bill allowing up to 10% of state finances and pensions to be invested in Bitcoin and other digital assets, making it the first US state to establish a strategic Bitcoin reserve. This pioneering move highlights Bitcoin's growing role in global finance and offers valuable reference for Taiwan. Facing economic pressure from TWD appreciation, we should learn from Arizona's experience and seriously consider including Bitcoin in national reserves to strengthen economic resilience and financial independence.

Conclusion: Building New Economic Resilience for Taiwan

Taiwan cannot passively respond to exchange rate fluctuations; we must proactively seek long-term solutions. Strategic Bitcoin reserves are not only a response to the current crisis but also an investment in future economic security. Let us work together to promote this forward-looking policy and build a more robust economic foundation for Taiwan!

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