Taiwan Lawmaker Wants Bitcoin in National Reserves
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Taiwanese legislator Ko Ju-Chun has proposed a groundbreaking initiative: incorporating Bitcoin into the nation's reserves. His proposal, presented at the National Conference and amplified on X (formerly Twitter), suggests adding Bitcoin alongside gold and foreign currencies to bolster Taiwan's financial resilience against economic shocks. Ju-Chun argues that Bitcoin's ability to withstand global economic fluctuations, demonstrated over 15 years, makes it a valuable addition to the existing $577 billion in foreign exchange assets and 423 metric tons of gold. He advocates for allocating up to 5% of Taiwan's $50 billion reserve, approximately $2.5 billion, to Bitcoin. This move is partly inspired by New Hampshire's similar action and references to a purported US presidential directive on Bitcoin reserves. The proposal, however, isn't without its critics. Some experts highlight Bitcoin's inherent volatility, with potential price swings of 10-20% weekly, and the legal complexities of managing a digital asset at a national level. Ju-Chun acknowledges these concerns but believes they are manageable, urging lawmakers to explore how central banks can securely buy, hold, insure, and regulate Bitcoin to prevent broader economic risks. This bold move, if successful, could position Taiwan as a leader in Asia's adoption of Bitcoin in national reserve strategies. The proposal follows a meeting between Ju-Chun and Samson Mow, CEO of Jan3, a firm promoting Bitcoin adoption globally, who discussed the technical and security aspects of such an undertaking. The discussions also touched upon the increasing volatility of fiat currencies as a key driver for considering Bitcoin as a reserve asset.
