Key Takeaways

Taiwan will explore adopting Bitcoin as a reserve asset.

The announcement comes amid calls for the central bank to diversify away from the U.S. dollar.

Taiwan’s central bank reserves are heavily concentrated in U.S. Treasuries.

Taiwan’s government and central bank (CBC) will consider incorporating Bitcoin as a strategic reserve asset.

Confirming the news on Wednesday, Nov. 12, Legislative Yuan Member Cho Jung-tai said an initial pilot would start with BTC seized by law enforcement. 

Cho Jung-tai has been exploring the prospect of a national Bitcoin reserve for Taiwan since at least May, when he discussed the matter with Samson Mow, the CEO of JAN3, a company that promotes state-level adoption of Bitcoin.

Following that meeting, the legislator was upbeat about the idea, suggesting that a strategic Bitcoin reserve could be good for national security and “financial resilience.”

Throughout 2025, the U.S.’s fluctuating stance on tariffs has prompted extreme volatility for the Taiwanese dollar (TWD).

In May, the CBC purchased $10.12 billion in a bid to strengthen the dollar against TWD and cap runaway appreciation of the local currency.

However, there are growing calls for the country to diversify its central bank reserves.

Taiwan’s former Premier Chen Chong is among those arguing the case for reduced exposure to the dollar.

In 2023, he criticized the CBC for not following other countries in stockpiling gold reserves.

While countries like France and Germany hold around two-thirds of their reserves in gold, Taiwan’s central bank reserves mainly consist of U.S. dollars and Treasuries, he observed.

Since then, Chen Chong has doubled down on the issue.

In May, he argued that the central bank remained too focused on assets that deliver stable and predictable growth, leading to overexposure to the U.S. market.

To reduce concentration risk and promote long-term security, he called on the CBC to diversify its balance sheet.

Other politicians have also joined the cause.

For instance, Chinese Nationalist Party (KMT) Chairman Eric Chu emphasized the risks of holding so much U.S. debt.

“How much of this will Taiwan be able to redeem?” the opposition leader asked.

Away from Taiwan, similar debates are playing out around the world.

In a survey of 75 central bank reserve managers earlier this year, 60% said they are looking to diversify their portfolios in the next 12-24 months, with many citing geopolitical risk and policy uncertainty as drivers.

Meanwhile, 73% of central banks expect the share of U.S. dollars in their reserves to decline over the coming years.

The post Taiwan Considers Bitcoin Reserves Amid Rising Calls For USD Diversification appeared first on ccn.com.