Taiwan's legislative body proposed to include Bitcoin in forex reserves, with an assessment to be completed by the end of 2025.

On November 11, 2025, Taiwan's Executive Yuan President Su Tseng-chang promised during an inquiry in the Legislative Yuan that a comprehensive audit of the government's Bitcoin holdings would be completed by the end of 2025, and the feasibility of including Bitcoin in the forex reserves would be assessed. This move responds to the diversification initiative for forex reserves proposed by Kuomintang legislator Ko Chih-en. Currently, over 90% of Taiwan's $602.94 billion forex reserves are in US dollar assets, facing significant currency concentration risks.

This policy discussion draws on the Bitcoin reserve strategies implemented by 18 states in the United States, as well as the executive order signed by President Trump in March 2025 to establish a strategic Bitcoin reserve, marking an acceleration of the global trend of sovereign-level Bitcoin allocation.

Current Status and Risk Analysis of Taiwan's Forex Reserves Structure

As of September 2025, Taiwan's total forex reserves reached $602.94 billion, ranking among the top in the world in terms of forex reserves held. However, the high concentration of asset structure has raised concerns in the legislative body—over 90% of the reserve assets are held in the form of dollars, making Taiwan's economy highly susceptible to fluctuations in the dollar exchange rate, changes in U.S. monetary policy, and geopolitical risks.

Taiwan forex reserves key data

Total scale: 602.94 billion USD

Dollar share: >90% (approximately 542 billion dollars)

Audit deadline: end of December 2025

Judicial seizure: 146 million USD (2024 fraud case)

Comparison benchmark: 18 U.S. states have configured Bitcoin reserves.

Legislator Ko Chih-en pointed out during a questioning session in the Legislative Yuan: “Over-reliance on the US dollar puts Taiwan at risk of currency depreciation. If the US dollar weakens or the New Taiwan dollar appreciates, the purchasing power of reserves may be eroded, threatening stability and challenging macroeconomic resilience.” This concern is particularly relevant against the backdrop of increasing disputes over the long-term value of the US dollar, with several international investment banks releasing reports discussing the sustainability of the dollar's status as a reserve currency.

Global Bitcoin Reserve Trends and Policy References

The assessment of Taiwan's Bitcoin reserves is not an isolated event, but rather part of the global trend towards diversification of the monetary system. In March 2025, U.S. President Trump signed an executive order to establish a strategic Bitcoin reserve and U.S. digital asset reserves, paving the way for sovereign-level Bitcoin allocation. The BITCOIN bill proposed by Senator Cynthia Lummis further requires the Treasury to purchase up to 1 million Bitcoins within five years, and stipulates a minimum holding period of 20 years.

The practices of various states in the United States provide Taiwan with a more specific reference template. According to data from the National Conference of State Legislatures, 18 states have proposed or passed cryptocurrency strategic reserve bills, including economic powerhouses such as New Hampshire, Arizona, and Texas. These policy experiments have accumulated valuable experience for sovereign-level Bitcoin reserves, especially in terms of custody solutions, valuation methods, and risk management frameworks.

Taiwan's Judicial Seizure of Assets and Strategic Reserve Construction

One asset source worth attention is the cryptocurrency seized by the judicial department. In 2024, Taiwan's prosecutors confiscated approximately $146 million worth of cryptocurrency in a major fraud case, and the disposal of these assets has become the focus of legislative discussions. Ke Zhi'en suggested that the involved Bitcoin should be retained for strategic use rather than immediate liquidation, which would help Taiwan gradually build a foundation for digital asset reserves.

This approach is consistent with international best practices. The U.S. Department of Justice has begun to differentiate between immediately liquidated assets and long-term strategic holdings when dealing with similar cases, particularly with assets like Bitcoin that have macro-strategic value. Incorporating judicial forfeiture into the national reserve system can enhance the economic efficiency of law enforcement actions and provide a source of non-debt assets for the treasury.

Challenges of Regulatory Framework and Legislative Process

Despite the attention given to the proposal for reserve diversification, Taiwan faces the risk of lagging behind in the overall regulatory framework for digital assets. Legislator Ko Chih-en criticized the slow legislative process for the special law on virtual asset service providers, warning that regulatory uncertainty could threaten industry growth and limit Taiwan's role in the digital finance sector. Currently, only 9 cryptocurrency platforms are regulated in Taiwan, and a more comprehensive legislative void may hinder innovation.

Current Status of Digital Asset Regulation in Taiwan

Regulated platforms: 9 cryptocurrency exchanges

Special Legislation: The draft law for virtual asset service providers is under review.

International reference: US GENIUS Act, Singapore Digital Asset Standards

Bank Cooperation: Suggesting a Framework for Collaboration between Banks and VASPs

International comparisons show that the United States has established a comprehensive digital asset regulatory framework through the GENIUS Act, while Singapore has also released advanced digital asset standards. These institutional innovations not only provide certainty for the market but also attract a large influx of talent and capital. If Taiwan wants to maintain its position in digital finance competition, it needs to accelerate the relevant legislative process.

Technical Infrastructure and Risk Management

Incorporating Bitcoin into forex reserves involves not only policy decisions but also the need for technical capability development. Secure custody solutions, price monitoring systems, trading execution capabilities, and auditing frameworks are all necessary infrastructures. Taiwan's “central bank” may need to collaborate with private sector specialized institutions or invest in building an internal professional team to meet the unique requirements of digital asset management.

Risk management is another key consideration. The price volatility of Bitcoin is much higher than that of traditional reserve assets, necessitating the design of appropriate position size controls, rebalancing mechanisms, and hedging strategies. Deutsche Bank analysts predict that Bitcoin could become a core financial asset by 2030, achieving a reserve status similar to that of gold, but managing volatility during this transformation process is crucial.

Geopolitical Dimensions and Financial Autonomy

The discussion of Taiwan's reserve diversification inevitably carries geopolitical implications. Reducing dependence on the dollar system is often seen as a measure to enhance financial autonomy, especially against the backdrop of a potential restructuring of the global trade and settlement system. Digital assets, due to their decentralized nature, may offer alternatives to bypass traditional financial channels in certain scenarios.

However, this transformation requires careful balancing. Dollar assets currently still provide unparalleled liquidity and market depth, and rash adjustments may trigger unnecessary market reactions. The year-end evaluation report from Taiwan's “central bank” is likely to adopt gradual recommendations, starting with small-scale allocation pilot projects and gradually expanding the scale as experience is accumulated.

Future Outlook and Implementation Path

Taiwan's formal assessment of Bitcoin reserves represents an important milestone in the integration of traditional financial systems and digital assets. Regardless of the final decision, this process itself will promote a deeper understanding among policymakers, regulators, and market participants of the value of digital assets. The “central bank” governor Yang Jinlong's commitment to a balanced report may provide important references for other similar economies.

From the implementation timeline, the possible pilot projects are expected to be launched in 2026 after the completion of the assessment report at the end of 2025. The initial configuration scale may be relatively conservative, focusing on the establishment of asset security, liquidity management, and compliance frameworks. This cautious approach aligns with the prudent principles of sovereign wealth management but also reflects the uniqueness of digital assets as an emerging asset class.