Taiwan investigates strategic Bitcoin reserve: will there be a major price change?

Taiwan is working on an official overview of all Bitcoin (BTC) seized by domestic authorities. The report is due to be published at the end of this year, but the question hanging over the market is whether Taipei will open the door to a strategic reserve.

Debate over national Bitcoin role is gaining momentum

Prime Minister Zhuo Rongtai announced during a budget meeting that the government wants to gain insight into the total amount of Bitcoin confiscated. He indicated that the report will also contain a list of advantages and disadvantages of a national reserve. This is the first time Taiwan is openly considering using Bitcoin as a strategic instrument.

The discussion received a boost when the United States signed an Executive Order under President Donald Trump on March 7 for a strategic Bitcoin reserve. That stock is filled with crypto taken by the government and currently amounts to approximately 325,000 BTC. According to researcher Joe Burnett, that was “the first real step towards integrating Bitcoin into the global financial system.”

There are now increasing calls in Taiwan to consider a similar step. During the consultation, lawmaker Ge Rujun stated that the government should “keep the confiscated coins unchanged” for the time being until a final decision is made. Several parliamentarians see Bitcoin as a possible safety net in a period of geopolitical tension.

China tensions strengthen focus on Bitcoin

Rep. Ko Ju-Chun called the Prime Minister’s willingness to explore Bitcoin as a strategic option a “breakthrough.” He refers to the increased international attention for crypto as an alternative reserve, especially as Chinese influence in the region increases. According to him, the central question is whether Taiwan should prepare for a future in which Bitcoin plays a more robust role.

Earlier in May, Ko already advocated a limited inclusion of Bitcoin in the national reserve. He suggested a maximum of 5 percent of the existing reserve of fifty billion dollars. This did not yet lead to a concrete plan, but the new report can stimulate that discussion again.

In the meantime, the country is working on clearer regulations to encourage institutional use of crypto. Last year, the regulator FSC started a trial for banking services related to the secure storage of crypto. The outcome of the new report is expected to determine whether Taiwan will actually build up a strategic Bitcoin reserve, or whether the confiscated coins will still be sold.