Taiwan is joining the ranks of nations exploring the idea of creating national bitcoin reserves. According to reports, Taiwanese legislator Ko Ju-Chun has formally presented a proposal to allocate part of Taiwan's massive foreign exchange reserves into bitcoin.
The country holds approximately $602 billion in FX reserves, with over 80% held in dollar-denominated assets. This concentration creates exposure to currency devaluation risk and the possibility of inaccessible assets due to geopolitical tensions with China.
Ko Ju-Chun delivered a report on the benefits of bitcoin as a reserve asset directly to the premier and central bank governor during an interpellation session. The report highlights bitcoin's fixed supply, decentralization, and resistance to seizure as attributes that make it well-suited for Taiwan's security situation.