A research fellow at the Bitcoin Policy Institute has suggested Taiwan adopt Bitcoin as a reserve asset to hedge against geopolitical risks and U.S. dollar debasement. Jacob Langenkamp argued that Bitcoin would remain accessible during a potential Chinese military action, unlike gold or U.S. dollar reserves. Taiwan’s central bank previously explored but rejected the idea, citing volatility and custody concerns, though the country already holds at least 210 Bitcoin confiscated from criminal cases.
Taiwan should reconsider adopting Bitcoin as a reserve asset to hedge against global turmoil and the risk of war, according to a research fellow at the Bitcoin Policy Institute. In a report, Jacob Langenkamp stated that Bitcoin would be the only reserve asset fully accessible if China pursued reunification by military force.
“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,” he added. Nation-states have begun exploring strategic Bitcoin reserves, seen as a bullish signal for the cryptocurrency.
Taiwan’s central bank investigated establishing a national Bitcoin reserve last year but ruled it out in December. The bank cited volatility, liquidity, and custody concerns, instead identifying the U.S. dollar as a safer alternative.
Taiwan is heavily exposed to the risks of U.S. dollar debasement, Langenkamp said, because its central bank reserves are at least 80% in USD-denominated assets. Growing U.S. debt, Federal Reserve monetary expansion, a potential AI market downturn, and declining semiconductor revenues could accelerate this debasement.
“Bitcoin can couple with gold to offer that hedge against USD debasement. It can provide another opportunity for the CBC to adopt a reserve asset before its peers and benefit the people of Taiwan with the subsequent price appreciation,” Langenkamp added. He argued the central bank’s concerns are valid but addressable with institutional expertise.
Despite ruling out a reserve, the Central Bank of the Republic of China (Taiwan) committed to further testing the technology in a digital asset sandbox. Taiwanese lawmaker Ko Ju-Chun revealed last year that the country’s Ministry of Justice holds 210 Bitcoin, worth $14 million, confiscated during criminal investigations.
This disclosed holding would make Taiwan the seventh-largest national Bitcoin holder, according to one tracker, behind El Salvador but ahead of Finland. Langenkamp concluded that Bitcoin can offer Taiwan geopolitical insurance and monetary resilience.
