Taiwan’s Bitcoin Reserve Bombshell: $600M Bet to Outsmart Global Chaos?
Taiwan lawmaker Ko Ju-Chun pushes for a $600M Bitcoin reserve to shield against dollar volatility. Is BTC the key to national security?
Taiwanese legislator Ko Ju-Chun has sparked global intrigue by urging the nation’s central bank to allocate up to 5% of its $50 billion foreign reserves—roughly $600 million—to Bitcoin (BTC). Announced on May 8, 2025, this bold proposal aims to bolster Taiwan’s financial resilience and national security amid U.S. dollar volatility and geopolitical tensions, particularly with China.
What’s Happening?
Ko, a Kuomintang party member, argues Bitcoin can hedge against a weakening dollar, down 9% in 2025, and diversify Taiwan’s reserves, which are 80% U.S.-based. Meeting with crypto advocate Samson Mow in Congress, Ko emphasized BTC’s role as a decentralized asset free from foreign control.
Ko, a Kuomintang party member, argues Bitcoin can hedge against a weakening dollar, down 9% in 2025, and diversify Taiwan’s reserves, which are 80% U.S.-based. Meeting with crypto advocate Samson Mow in Congress, Ko emphasized BTC’s role as a decentralized asset free from foreign control.
Why It Matters
Bitcoin, trading near $100,000, is increasingly seen as a strategic asset, with nations like El Salvador holding BTC reserves. Taiwan’s proposal could inspire other countries, especially in Asia, to follow suit, boosting crypto adoption. However, critics, like the Swiss National Bank, cite Bitcoin’s volatility—down 21% from its $108,786 peak—as a risk for reserves. Regulatory hurdles and China’s anti-crypto stance could complicate Taiwan’s plan, potentially impacting its $3.2 trillion crypto market.
Bitcoin, trading near $100,000, is increasingly seen as a strategic asset, with nations like El Salvador holding BTC reserves. Taiwan’s proposal could inspire other countries, especially in Asia, to follow suit, boosting crypto adoption. However, critics, like the Swiss National Bank, cite Bitcoin’s volatility—down 21% from its $108,786 peak—as a risk for reserves. Regulatory hurdles and China’s anti-crypto stance could complicate Taiwan’s plan, potentially impacting its $3.2 trillion crypto market.
What’s Next?
If approved, Taiwan could join the U.S. in building BTC reserves, potentially driving Bitcoin toward $105,000. Yet, the central bank’s conservative stance and global trade tensions, including Trump’s tariff policies, may delay action. A failure to diversify could leave Taiwan vulnerable to dollar swings, but a rushed move risks financial instability.
If approved, Taiwan could join the U.S. in building BTC reserves, potentially driving Bitcoin toward $105,000. Yet, the central bank’s conservative stance and global trade tensions, including Trump’s tariff policies, may delay action. A failure to diversify could leave Taiwan vulnerable to dollar swings, but a rushed move risks financial instability.
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NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
