Bitcoin as a Hedge: Taiwanese Lawmaker Takes Reserve Proposal to the Top


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Taiwan’s central bank has been given one month to prepare a report on stablecoins and digital asset reserves — a deadline set not by its leadership, but by a lawmaker in the country’s legislature.

Official payment from the Legislative Council

These instructions came from Dr. Ko Ju-chun, a member of the Legislative Council, who formally introduced an offer He urged Taiwan to allocate part of its national reserves Bitcoin.

The report he submitted was supported by Bitcoin Policy Institute It was delivered directly to Premier Zhu Jong-tae and Central Bank Governor Yang Chinlong during an official session.

This was not a press release or public speech. It was delivered within one of the government departments, to those who have the authority to dispose of it.

The driving concern behind this proposal is the shape of Taiwan’s reserves portfolio. The country has nearly $600 billion in foreign exchange reserves. More than 80% of them are linked to US dollar assets.

Source: BPI

Baby Researcher Jacob Langenkamp described Taiwan’s situation as a convergence of geopolitical risks and… Reserve Focus – He argued that bitcoin could remain affordable even in extreme situations where traditional financial assets might be banned or restricted.

Bitcoin is framed as a security tool, not just an investment

This argument positions Bitcoin as something beyond mere speculation. BPI’s Sam Lehman pointed to Dr. Ko’s move as evidence that Taiwanese lawmakers are evaluating the assets real seriously, treating them less as a financial product and more as a strategic tool.

Unlike gold, which must be physically transferred, or paper assets, which rely on government regulations and bilateral trust, bitcoin operates outside those structures entirely.

The proposal does not require Taiwan to fully intervene. Rather, it asks the government to consider putting a slice of its reserves in bitcoin as a hedge — specifically as a way to reduce reliance on dollar-denominated assets amid a changing geopolitical environment.

BTCUSD trading at $78,412 on the 24-hour chart: TradingView

The central bank remains cautious

Whether this recommendation gains any traction remains uncertain. Taiwan’s central bank has rejected using Bitcoin as a reserve asset in 2025, citing concerns about price volatility, liquidity and the practical challenges of custody. Its position has not officially changed.

What has changed is the activity underneath. The bank runs a sandbox program using captured bitcoin to test how the digital asset behaves within a controlled framework. This is not the same as an endorsement, but it is not a rejection either.

The executive and central bank will now formally evaluate the proposal, and their decision is likely to draw the attention of countries considering similar strategies.

Featured image from MetaAI, chart from TradingView

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