Taiwanese lawmaker Ko Ju-Chun has made waves in the financial sector by advocating for the inclusion of Bitcoin in the country’s national reserves. This proposal was presented during a national conference, stressing the importance of Bitcoin as a potential hedge against economic unpredictability.
Ko, a legislator at-large in Taiwan’s Legislative Yuan, took to X to emphasize Bitcoin’s ability to bolster Taiwan’s financial resilience alongside traditional reserves like gold and foreign exchange. He believes that in light of global inflation and geopolitical threats, Taiwan must diversify its assets to ensure stability.
Ko argued that as an export-driven economy, Taiwan’s currency, the New Taiwan dollar, has endured volatility amidst fluctuating global markets. Currently, Taiwan holds 423 metric tons of gold and approximately $577 billion in foreign exchange reserves.
In volatile scenarios such as currency fluctuations or regional tensions, Ko highlighted the potential drawbacks of conventional reserve strategies, proposing that Bitcoin could serve as a favorable addition due to its fixed supply, decentralization, and resistance to external censorship.
Bitcoin: A Future Asset Class
The lawmaker underscored that Bitcoin, operational for over 15 years, should be recognized within the global perspective of reserve asset strategies. He highlighted that while he does not see Bitcoin as the singular solution to economic challenges, its inclusion in a diversified reserve could significantly enhance Taiwan’s financial strategy.
In his commentary, Ko reflected on the strategic necessity for countries to guard against potential financial disruptions, likening Bitcoin to a crucial asset in the digital era, akin to gold in the traditional sense.
“As former Dean Chen Chong said, Bitcoin is the gun of the digital era,” Ko quoted, emphasizing that nations should manage their financial tools independently.
As Taiwan embraces a more crypto-friendly landscape, it seeks to establish institutional frameworks that allow for cryptocurrency custody services, contrasting sharply with mainland China’s restrictive measures regarding digital assets.
In conclusion, Ko’s recommendation to allocate a small fraction of Taiwan’s reserves, potentially up to 5%, to Bitcoin could mark a significant shift in how nations perceive and utilize cryptocurrencies. As global economic dynamics evolve, Taiwan’s proactive stance in considering Bitcoin could serve as a model for other nations exploring similar financial strategies.
