Bitcoin Strategic Reserve: The New Global Digital Asset Game and Taiwan's Critical Next Step
Dr. Ju-Chun Ko Imagine if our national savings were no longer just sitting in banks, but evolving with the digital age to become a solid shield for national economic security.
This is not science fiction; it is a global financial transformation happening right now.
Given the trends in global digital assets and the rapid shifts in geopolitics and economics, I (Ju-Chun Ko) have repeatedly questioned and advocated in the Legislative Yuan: The government should prudently evaluate the possibility of including cryptocurrencies like Bitcoin in our national strategic reserve assets. This is not only to diversify risk but also to ensure Taiwan is not marginalized in this wave of digital economy, and perhaps even aligns itself internationally.
Today, I want to talk about why this is so important for Taiwan and what the rest of the world is doing.
The Strategic Reshuffling
Perhaps you haven’t noticed, but the attitude of global governments towards cryptocurrencies has shifted from “wait-and-see” to “strategic reserve”.
“Global adoption of cryptocurrency into national strategic reserves” is no longer a future tense; it is present continuous.
In March 2025, the United States took the lead in establishing an official strategic Bitcoin reserve, a move that shook the global financial world. This is not just about buying an asset; it symbolizes a re-evaluation of monetary policy and financial sovereignty by the state.
Global Government Bitcoin Holdings (2025)
Top two nations hold over 66% of tracked government holdings
Global Government Bitcoin Holdings Ranking (2025), with the US and China leading significantly.
Look at this chart. According to 2025 data, governments collectively hold between 2.3% and 2.5% of the total Bitcoin supply.
- United States 🇺🇸: The leader. Holding over 200,000 BTC and having formally established a strategic reserve framework. President Trump’s executive order changing from “auctioning confiscated assets” to “long-term holding” is a strategic pivot.
- China 🇨🇳: The silent whale. Although strictly controlled publicly, it is estimated to hold nearly 195,000 BTC. These assets, mostly from confiscations, are a force to be reckoned with if moved into the national treasury for long-term storage.
- Bhutan 🇧🇹: An impressive small nation strategy. Utilizing its abundant hydropower for green mining, it produces 1-5 BTC daily and has accumulated over 13,000 BTC. This is a perfect case of converting natural resources into digital gold.
- Others: The UK, Ukraine, UAE, El Salvador, and others are also establishing their positions in this race.
The world is moving. What about Taiwan?
Taiwan’s Position: All Eggs in One Basket
We often talk about “risk management,” but look at Taiwan’s foreign exchange reserve structure.
Taiwan's Reserves Composition ($577b)
USD holdings represent over 9 in 10 dollars of total reserves
Of Taiwan’s $577 billion foreign exchange reserves, over 90% relies on USD assets.
Taiwan’s foreign exchange reserves exceed $577 billion, the fruit of our hard work. But about 92% consists of US Treasury bonds or USD derivatives, with gold reserves accounting for a tiny fraction.
This excessive concentration exposes us to significant risks:
- Exchange Rate Volatility: The New Taiwan Dollar is directly impacted by US policies.
- Inflation and Depreciation: When the USD depreciates due to loose monetary policies, the purchasing power of our assets shrinks.
- Geopolitics: Reliance on a single country’s monetary policy weakens our financial autonomy.
I have repeatedly emphasized in the Legislative Yuan: Bitcoin has a fixed supply (21 million coins) and possesses the scarcity of “Digital Gold”. It is decentralized and controlled by no single government. Allocating a moderate amount to Bitcoin can effectively hedge against inflation and reduce reliance on a single currency.
My Proposal: Three Stages to Digital Nationhood
Many worry about risks, which is normal. So, what I propose is not an impulsive “all-in”, but a progressive, risk-controlled implementation path.
In my November 2025 inquiry, the Premier and the Central Bank Governor promised to conduct a formal evaluation and expect to submit a report by the end of the year. This is a good start.
My suggested implementation path is as follows:
Phase 1: Pilot Program (2025 - 2026 H1)
Don’t rush to buy; start with “Not Selling”. Use existing Bitcoin held by the Central Bank or confiscated by law enforcement for a small-scale pilot. Establish a cross-ministry management framework (Central Bank, Ministry of Finance, FSC, NSTC) and introduce industry-standard Cold Storage and Multi-Signature technology. Goal: Practice. Verify management processes and security.
Phase 2: Legislation (2026 Mid - 2027 Early)
Enact the “Digital Asset National Reserve Management Act”. This step is to give Bitcoin reserves a clear legal status and establish a transparent oversight mechanism for the Legislative Yuan and the public to review. Goal: Regulation. Communicate and coordinate with international organizations (like IMF) to ensure compliance.
Phase 3: Expansion & Diversification (2027 Onwards)
Based on pilot results, gradually expand the Bitcoin reserve to 0.5% - 2% of total national reserves. Compared to 92% USD assets, this is negligible, but it offers huge benefits for risk diversification. At the same time, consider including other mainstream digital assets like Ethereum. Goal: Deployment. Truly leverage the hedging function of strategic reserves.
Conclusion: Betting on Taiwan’s Future
Taiwan has globally recognized tech talent, and our blockchain security technology (like Cybavo acquired by Circle) leads the world. We have the technology, the talent, and the capital. What we lack is just the determination to take that step.
Including Bitcoin in strategic reserves is not just about making money; it’s about adding an extra layer of insurance for Taiwan in an uncertain future.
This is a test of foresight. The US has moved, China is moving, the world is moving.
Taiwan cannot be absent.
[To learn more about real-time updates on this issue, follow my social media to monitor the government’s evaluation progress together!]