Taiwan premier promises Bitcoin reserve assessment report by end of 2025
News Summary
Taiwan's Premier Zhuo Rongtai announced that the country will issue a report by the end of 2025 assessing the total amount of Bitcoin confiscated by domestic agencies. This report will also include, for the first time publicly, a list of pros and cons for creating a strategic Bitcoin reserve. Legislator Ge Rujun suggested holding these confiscated Bitcoins "unchanged" before deciding whether to liquidate them or include them in a strategic reserve. He previously advocated for allocating up to 5% of Taiwan's $50 billion reserve to Bitcoin as a hedge against global economic uncertainty. Governmental interest in establishing a Bitcoin reserve has notably risen, especially after US President Donald Trump signed an executive order in March 2025, outlining a plan to create a Strategic Bitcoin Reserve using cryptocurrency forfeited in government criminal cases. Taiwan's Financial Supervisory Commission (FSC) had already launched a trial for crypto custody services for financial institutions in October 2024, indicating a broader move towards crypto-friendly regulations.
Background
Taiwan is considering the establishment of a national Bitcoin reserve, a move partly influenced by developments in the United States. In March 2025, US President Donald Trump signed an executive order outlining a plan to create a Strategic Bitcoin Reserve using cryptocurrency forfeited in government criminal cases, setting a precedent for other nations globally. Taiwanese lawmakers have previously called for the government to consider adding Bitcoin to its national reserves, citing its potential to serve as a hedge amid global economic uncertainty. This initiative is part of Taiwan's broader efforts to explore crypto-friendly regulations to bolster institutional cryptocurrency adoption. For instance, Taiwan's Financial Supervisory Commission (FSC) launched a trial for crypto custody services for financial institutions in October 2024.
In-Depth AI Insights
What are the geopolitical and economic drivers behind Taiwan's move, beyond simply following the US? - Geopolitical Hedging: Taiwan faces unique geopolitical risks. Bitcoin could offer an uncorrelated asset to diversify traditional reserves (e.g., USD, gold), providing a hedge against potential financial sanctions or currency volatility during a crisis. - Economic Resilience: Given its export-oriented economy and reliance on global supply chains, Taiwan seeks ways to bolster its financial system against external shocks and potential disruptions. Bitcoin could offer a decentralized, censorship-resistant asset. - Following US Precedent: The Trump administration's move to establish a Strategic Bitcoin Reserve provides political and operational 'permission' for other nations, de-risking the 'first mover' challenge for Taiwan. What implementation challenges and potential risks will Taiwan face? - Regulatory Complexity: Integrating Bitcoin into national reserves necessitates navigating complex legal and regulatory frameworks, including valuation, custody, security, and audit protocols. - Market Volatility: Bitcoin's inherent volatility presents challenges for reserve value management, requiring robust risk management strategies. - International Coordination: While the US has made a move, the lack of broader international consensus on Bitcoin's reserve currency status could lead to resistance or distrust from other traditional financial bodies. - Cybersecurity Risks: A national-level Bitcoin reserve would be a prime target for cyberattacks, demanding top-tier security infrastructure and protocols. What are the implications of this potential policy for the broader crypto market and sovereign adoption? - Enhanced Legitimacy: If Taiwan ultimately establishes a Bitcoin reserve, it would significantly boost Bitcoin's legitimacy as a viable sovereign reserve asset, encouraging more nations to explore similar moves. - Institutional Demand: National-level adoption would increase demand for Bitcoin, potentially impacting its long-term price dynamics and driving deeper institutional infrastructure development. - Reserve Diversification Trend: This could signal a nascent trend in global reserve asset diversification, with governments seeking alternatives to reduce reliance on single fiat currencies and hedge against global uncertainties.