Taiwan’s central bank discusses Bitcoin as a potential reserve asset amid push to diversify from US dollar

Taiwan is now openly debating whether Bitcoin belongs in its national reserves. On April 29, Legislator Dr. Ko Ju-Chun walked into a Legislative Yuan session and handed Premier Cho Jung-tai and Central Bank of China (CBC) Governor Yang Chin-long a report from the Bitcoin Policy Institute making the case for exactly that.

The pitch: Taiwan holds $602 billion in foreign exchange reserves, with more than 80% parked in US dollar-denominated assets.

What the BPI report actually argues

The Bitcoin Policy Institute published its report in March 2026. The core thesis is straightforward: Bitcoin offers geopolitical resilience during crises, including scenarios like a potential blockade of Taiwan.

Dr. Ko’s presentation wasn’t just a show-and-tell moment. He formally requested that the CBC produce a new report on stablecoins and digital asset reserves within one month. That deadline puts the central bank on the clock to deliver a fresh assessment by late May.

In late 2025, the CBC conducted its own evaluation of Bitcoin as a reserve asset. The conclusion at the time was that Bitcoin was unsuitable, citing three concerns: volatility, liquidity, and custody challenges.

Following that 2025 assessment, the bank committed to launching a digital asset sandbox using 210 seized Bitcoin.

The global context

The US established its Strategic Bitcoin Reserve in 2025, a move that shifted the Overton window for every other country considering the same idea.

What this means for investors

If Taiwan were to allocate even a tiny fraction of its $602 billion reserves to Bitcoin, the market impact would be substantial. For context, a 1% allocation would represent roughly $6 billion in buying pressure, a figure that would place Taiwan among the largest sovereign Bitcoin holders on the planet.

The more immediate signal worth watching is the digital asset sandbox using those 210 seized Bitcoin. How the CBC structures that experiment, what custodial solutions it tests, and what conclusions it draws will likely shape the broader reserve debate more than any legislative presentation.

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