Legislator Ko Ju-Chun of Taiwan has called on the government to consider incorporating Bitcoin into its national reserves, alongside gold and foreign currencies.

During a national finance conference held on May 9, Ko suggested dedicating a small portion of the country’s reserve assets to Bitcoin (BTC) as a hedge against rising global economic uncertainty and regional geopolitical risks.

Ko highlighted Bitcoin’s decentralized characteristics, finite supply, and its emerging role as a protective asset in various countries as significant reasons for its inclusion in Taiwan’s sovereign asset strategy.

He pointed out Taiwan’s reliance on exports and the volatility of the New Taiwan dollar as further motivations to diversify the reserve portfolio.

Bitcoin as a contingency reserve

The legislator also emphasized Taiwan’s vulnerability in potential crisis scenarios, proposing that Bitcoin could serve as an uncorrelated asset that provides liquidity and minimizes the risk of seizure during geopolitical conflicts.

Previously, he noted on X that Taiwan may allocate up to 5% of its reserves—around $50 billion—to Bitcoin, positioning this move as part of a diversified strategy rather than a total overhaul.

While Ko acknowledged that Bitcoin isn’t a cure-all for Taiwan’s financial challenges, he underscored the importance of enhancing the nation’s economic resilience toolkit.

This proposition arises as Taiwan moves towards more crypto-friendly regulations. The Financial Supervisory Commission is anticipated to begin trials for institutional crypto custody later this year. In contrast, mainland China maintains a comprehensive ban on most crypto activities.

Taiwan’s Financial Supervisory Commission unveiled a draft of the “Virtual Asset Service Act” on March 25, designed to regulate crypto businesses and protect investors. The draft includes licensing requirements for VASPs, criteria for stablecoin issuance by banks, and enforcement measures.

A 60-day public consultation period has been initiated, with the legislation expected to be presented to the Executive Yuan by June 30.

Ko’s appeal positions Taiwan among a select but growing array of jurisdictions contemplating Bitcoin as a strategic reserve asset. Although no formal policy has been established, his advocacy highlights a rising interest in digital assets within Taiwan’s financial planning discussions.