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Taiwanese legislator Ko Ju-Chun has urged the administration to contemplate including Bitcoin in its national reserves, proposing it could act as a safeguard against global economic instability.
Ko Ju-Chun, a legislator-at-large in Taiwan’s legislative assembly, the Legislative Yuan, took to X on Friday to announce that he championed Bitcoin (BTC) investment by the Taiwanese government during the National Conference on May 9.
In his comments, Ko pointed out Bitcoin’s capacity to function as a shield amid global economic challenges, encouraging Taiwan to acknowledge the cryptocurrency alongside gold and foreign exchange reserves to enhance financial durability.
Ko’s declaration emerged shortly after the legislator held discussions with Samson Mow, who endorses Bitcoin adoption by countries such as El Salvador at his BTC technology firm Jan3.
Taiwan is an export-driven economy
Ko emphasized that Taiwan operates as an export-centric economy that has undergone notable fluctuations in its national currency, the New Taiwan dollar, in the face of global inflation and escalating geopolitical tensions.
“Our current gold reserves stand at 423 metric tons, and our foreign exchange reserves total $577 billion, which includes investments in US Treasury bonds,” the legislator conveyed.
In a situation of heightened currency instability or potential regional conflicts, Taiwan may “very likely struggle to guarantee security and liquidity,” Ko added, mentioning that Bitcoin could be an excellent new component of Taiwan’s reserves for several reasons.
“Bitcoin has been functioning for over 15 years. It has a predetermined total supply, is decentralized, and is resilient against censorship. Numerous nations are focusing on its hedging properties. Simultaneously, during severe circumstances, it may not encounter embargo risks,” he asserted.
Bitcoin is not the sole solution
Referring to numerous global initiatives contemplating Bitcoin adoption as a reserve asset, Ko underscored that he’s not advocating for Bitcoin as the “only remedy” to escalating economic challenges.
Rather, the legislator suggested incorporating a “small percentage of Bitcoin” into diversified assets as instruments for sovereign asset allocation and risk management, along with backup capabilities for Taiwan’s financial system.
Related: Trump misled into promoting XRP for crypto reserve: Report
He earlier proposed that Taiwan might devote a maximum of 5% of its $50 billion reserve to Bitcoin in an X post on May 6.
“As exchange rate risk and regional uncertainty rise, it is the moment to introduce new instruments to formulate a more adaptable financial strategy framework,” Ko stated, adding:
“As former Dean Chen Chong remarked, Bitcoin is the weapon of the digital era. It might also represent the gold of the digital age, the silver of the digital age. Or it could be powder. A prudent nation will not allow weapons to rest in others’ hands.”
This news surfaces as Taiwan positions itself as a crypto-friendly jurisdiction, with the Financial Supervisory Commission advancing institutional trials of crypto custody services in late 2024.
Mainland China remains steadfast in its antagonistic stance towards cryptocurrency after enforcing a ban on various crypto activities, including mining, in 2021.
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