Taiwan should reconsider adopting Bitcoin as a reserve asset to hedge against geopolitical instability and potential conflict with China, according to a Bitcoin Policy Institute research report.
The report argues that in scenarios such as a blockade or invasion, Bitcoin would remain accessible and transferable, unlike physical gold or potentially restricted US dollar reserves.
“Uniquely for Taiwan, Bitcoin provides geopolitical resilience: in a PRC blockade or invasion, gold is stranded or seized and USD reserves face potential restrictions, but Bitcoin remains fully accessible without physical transport,”
Said Bitcoin Policy Institute research fellow Jacob Langenkamp.
Langenkamp also warned that Taiwan faces exposure to US dollar debasement risks, given that at least 80% of its central bank reserves and most of its trade are tied to dollar-denominated assets.
He added that Bitcoin, alongside gold, could act as a hedge against currency debasement while offering “geopolitical insurance against scenarios that hopefully do not come to pass” and enhancing monetary resilience.
Taiwan’s central bank previously explored a national Bitcoin reserve but rejected the idea in December, citing concerns over volatility, liquidity, and custody, although it continues to study digital assets in a sandbox environment.
Despite not formally adopting Bitcoin as a reserve, Taiwan holds at least 210 BTC confiscated through criminal investigations, which would rank it among the largest government holders globally if officially recognised.
At the time of reporting, Bitcoin price was $66,597.94.