A Taiwanese lawmaker, Ko Ju-Chun, is pushing for the government to add Bitcoin to the country’s financial reserves. He believes this would help protect Taiwan’s economy from major financial shocks.
Bitcoin as a Shock Absorber
Ju-Chun argues that Bitcoin’s proven resilience against global economic fluctuations makes it a valuable addition to Taiwan’s existing gold and foreign currency reserves. He suggests that even a small percentage of Bitcoin in the reserves could significantly strengthen the financial system. He’s actively promoted this idea both at a national conference and on X (formerly Twitter), encouraging discussion and feedback. He emphasizes that this wouldn’t replace existing reserves, but rather supplement them.
Meeting with Bitcoin Advocate
Ju-Chun recently met with Samson Mow, CEO of Jan3, a company focused on widespread Bitcoin adoption. Jan3 also supports the idea of countries using Bitcoin to hedge against volatile fiat currencies. Their discussion covered practical aspects like security, purchasing Bitcoin safely, and overcoming technical hurdles.
Current Reserves and Proposed Allocation
Taiwan currently holds 423 metric tons of gold and around $577 billion in foreign exchange. Ju-Chun points out the New Taiwan Dollar’s recent volatility, partly due to global inflation and regional tensions. He contrasts this with Bitcoin’s 15-year track record of weathering external pressures.
His proposal? Allocate up to 5% of a $50 billion reserve – roughly $2.5 billion – to Bitcoin. He cites New Hampshire’s similar move and mentions President Trump’s past interest in a US Bitcoin reserve, suggesting Taiwan could become a leader in Asia by adopting this strategy.
Addressing Concerns
While acknowledging the potential for significant price swings (10-20% weekly fluctuations are possible), and the need for clear legal frameworks for holding Bitcoin at a national level, Ju-Chun believes these challenges are manageable. He’s calling for lawmakers to investigate how central banks can securely buy, hold, and insure Bitcoin, while also implementing safeguards to prevent losses from impacting the broader economy.
