Taiwan lawmaker predicts 80% chance of bitcoin reserve

Dr. Ko Ju-chun, an at-large member of Taiwan’s Legislative Yuan and vice chair of the US-Taiwan Caucus, presented a report from the U.S.-based Bitcoin Policy Institute to Premier Cho Jung-tai and Central Bank Governor Yang Chin-long on April 29. He estimated roughly an 80% chance Taiwan will establish a strategic bitcoin reserve within five years and close to 100% within ten if political conditions align, and suggested part of the island’s $602 billion in foreign exchange reserves could be a source for a small initial allocation.

He outlined a five-step path that begins with research, builds a legal foundation, creates a small reserve framework and a national vault for government-held bitcoin, and culminates in formal reserve legislation. Ko said the research phase is under way through the institute’s report and follow-up talks with the central bank. Taiwan’s legislature passed the Virtual Asset Service Act on June 30, which he described as a “CLARITY moment” for regulators preparing to consider government holdings of digital assets.

Ko framed bitcoin as a tool for national resilience rather than routine portfolio diversification. He argued that in extreme scenarios such as war, sanctions or financial disruption, bitcoin’s censorship resistance, neutrality and ability to move value across borders can add a layer of resilience. He cited recent examples including Ukraine, Iran and Bhutan; Bhutan still holds thousands of bitcoin mined by a state investment arm.

He said any bitcoin holdings would complement, not replace, traditional reserve assets. “National strategic reserves will not always be limited to traditional sovereign currencies, bonds, or precious metals,” he told lawmakers, and added that accumulation should start small, follow strict custody practices and operate under a clear legal and operational framework.

Ko tied the timing of a formal reserve to electoral outcomes. He described the current ruling party as cautious toward bitcoin but more open to tokenized real-world assets and stablecoins, and said a center-right administration after the 2028 or 2032 presidential election could make a bitcoin reserve realistic within a single presidential term.

Central bank officials have engaged cautiously and no allocation has been approved. Critics cite price volatility, custody risks and the need for clear regulation. Ko’s proposal includes creating a national vault to hold government-controlled bitcoin, including coins seized in criminal cases. He plans further outreach and a fuller interview later this year as follow-up studies and central bank assessments continue.