Taiwan Lawmaker Urges Bitcoin Allocation in National Reserves to Hedge Against Geopolitical Risks

Taiwanese legislator Ko Ju-Chun is calling for a bold shift in the island’s financial policy by proposing the inclusion of Bitcoin as part of Taiwan’s national reserves. Speaking at the National Conference on May 9, Ko urged the government to consider allocating a modest portion of its vast reserves—currently $577 billion—towards Bitcoin, framing it as a strategic move to strengthen Taiwan’s financial defenses in an increasingly unstable global environment.

In a post on X, Ko underscored Bitcoin’s potential as a modern hedge against economic shocks, likening it to gold but with unique attributes suited for the digital era. “Bitcoin is not only decentralized and censorship-resistant, but it also operates beyond traditional financial systems, making it less vulnerable to embargoes or global sanctions,” Ko noted. He argued that this resilience could be crucial in a crisis, particularly for an export-reliant economy like Taiwan that faces persistent currency volatility and mounting geopolitical pressure.

Highlighting Taiwan’s current reserves—423 metric tons of gold and extensive holdings in U.S. Treasury bonds—Ko emphasized the need for diversification. “When exchange rate risk and regional uncertainty rise, it is time to introduce new tools,” he said, urging policymakers to rethink traditional asset strategies.

Ko’s advocacy follows his recent meeting with Samson Mow, a prominent Bitcoin proponent known for advising nation-states on Bitcoin integration through his company Jan3. Mow has played a key role in El Salvador’s pioneering Bitcoin strategy, and Ko appears to be taking cues from these global moves toward digital asset adoption.

Still, Ko was careful to stress that Bitcoin should not replace existing reserves but complement them. He envisions a small allocation as part of a broader financial safety net—not a wholesale shift. “Bitcoin isn’t the only answer to economic instability,” he said. “But it may be an essential part of a more agile and modern strategy.”

Drawing on a quote from former Dean Chen Chong, Ko concluded, “Bitcoin may be the gun, the gold, or even the gunpowder of the digital era. A wise nation won’t let such tools remain solely in others’ hands.”

The proposal lands as Taiwan continues to open its doors to digital assets. The Financial Supervisory Commission has already signaled intent to expand institutional crypto custody trials by late 2024, positioning Taiwan as a potential leader in regulated crypto integration—especially in contrast to Mainland China, which maintains a strict ban on cryptocurrency activities.