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Bitcoin As Hedge: Taiwan Lawmaker Takes Reserve Proposal To The Top

Taiwan’s central financial institution is being given one month to provide a report on stablecoins and digital asset reserves — a deadline set not by its personal management, however by a lawmaker within the nation’s legislature.

A Formal Push From The Legislature

That instruction got here from Dr. Ko Ju-Chun, a member of the Legislative Yuan, who formally offered a proposal urging Taiwan to allocate a portion of its nationwide reserves into Bitcoin.

The report he submitted was backed by the Bitcoin Policy Institute and was handed on to Premier Cho Jung-tai and central financial institution Governor Yang Chin-long throughout an official session.

This was not a press assertion or a public speech. It was delivered inside a authorities chamber, to the individuals who maintain the authority to behave on it.

The driving concern behind the proposal is the form of Taiwan’s reserve portfolio. The nation holds roughly $600 billion in international alternate reserves. More than 80% of that’s tied to US greenback property.

BPI researcher Jacob Langenkamp described Taiwan’s state of affairs as a convergence of geopolitical threat and reserve focus — and argued that Bitcoin may keep inside attain even in excessive conditions the place typical monetary property is perhaps blocked or restricted.

Bitcoin Framed As A Security Tool, Not Just An Investment

That argument positions Bitcoin as one thing past a speculative holding. BPI’s Sam Lyman pointed to Dr. Ko’s transfer as proof that Taiwan’s lawmakers are evaluating the asset with real seriousness, treating it much less like a monetary product and extra like a strategic instrument.

Unlike gold, which have to be bodily transported, or fiat property, which rely upon authorities methods and bilateral belief, Bitcoin operates exterior these constructions completely.

The proposal doesn’t ask Taiwan to go all in. It asks the federal government to contemplate placing a slice of its reserves into Bitcoin as a hedge — particularly as a strategy to cut back dependence on dollar-denominated property amid a shifting geopolitical setting.

The Central Bank Remains Cautious

Whether that advice positive aspects any traction stays unsure. Taiwan’s central financial institution turned down Bitcoin as a reserve asset in 2025, citing considerations over worth swings, liquidity, and the sensible challenges of custody. Its place has not formally modified.

What has modified is the exercise beneath. The financial institution has been working a sandbox program utilizing seized Bitcoin to check how digital property would possibly behave inside a managed framework. That will not be the identical as endorsement, however it’s not dismissal both.

The government department and central financial institution will now formally assess the proposal, with their choice probably to attract consideration from nations weighing comparable methods.

Featured picture from MetaAI, chart from TradingView

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