On May 9, Taiwanese lawmaker Ko Ju-Chun made a bold assertion, declaring, “Bitcoin is the gunpowder of the digital era.” He urged the government of Taipei to strengthen its financial reserves of $577 billion by incorporating Bitcoin (BTC) to safeguard against potential economic shocks or geopolitical tensions.
At the National Finance Conference, which took place on the same day, Ko advocated for Bitcoin’s inclusion as part of a diversified reserve strategy. He highlighted the increasing global risks and the cryptocurrency’s potential to act as a hedge, suggesting Taiwan should consider BTC alongside gold and foreign currency reserves to enhance its financial stability… pic.twitter.com/KHKcHLQ2uB
— 科技立委葛如鈞 Ko Ju-Chun (@dAAAb) May 9, 2025
During his address, Ko emphasized that Bitcoin should be recognized as a sovereign reserve asset, much like traditional commodities and currencies. His call for Bitcoin came shortly after engaging with Samson Mow, the CEO of Jan3, who is a notable proponent of Bitcoin adoption at the national level, particularly in nations like El Salvador.
As a legislator-at-large in Taiwan’s Legislative Yuan, Ko argued that Bitcoin could significantly bolster the island’s financial defense mechanisms. “We currently hold 423 metric tons of gold and our foreign exchange reserves total $577 billion, which includes U.S. Treasury bonds,” he noted. “But in scenarios of escalating currency volatility or potential regional conflict, the safety and liquidity of these assets may be compromised.”
Bitcoin as a Strategic Hedge Amid Rising Economic and Geopolitical Risks
In his speech, Ko elaborated on Bitcoin’s attributes—such as its limited supply, decentralization, and resistance to censorship—which make it a viable hedge against the increasing vulnerabilities of conventional financial instruments, especially under external pressures.
“Bitcoin has operated for over 15 years without a centralized authority and remains unyielding to embargoes,” Ko stated. “It’s essential for Taiwan to think strategically. Bitcoin can represent diverse assets—be it the gun, the gold, the silver, or the gunpowder of this digital era. A prudent nation should not cede such tools to others.”
Ko proposed that allocating a modest portion of Bitcoin—up to 5% of Taiwan’s $50 billion reserve—would be a wise decision. He stressed that this would form part of a mixed strategy rather than a complete overhaul of existing reserves.
The legislator’s recommendation stems from rising concerns over Taiwan’s economic vulnerabilities, particularly as an export-driven nation. He pointed out that the New Taiwan dollar has encountered significant fluctuations in response to global inflation and regional tensions.
“In times of severe crisis or regional instability, traditional reserve assets like bonds or even gold may fail to provide quick liquidity or security. Bitcoin’s design, which resists seizure and facilitates cross-border transactions, provides us with essential alternatives,” Ko argued.
Ko carefully positioned Bitcoin as an additional resource rather than a substitute for existing assets, clarifying, “I’m not suggesting Bitcoin is the sole solution. However, as exchange rate risks and regional instabilities increase, it’s crucial to embrace new tools that enhance our financial strategy’s flexibility and resilience.”
Taiwan’s Regulatory Push: FSC Advances Virtual Asset Oversight with New Legislative Draft
Ko’s remarks arrive at a pivotal moment for Taiwan’s regulatory landscape for cryptocurrencies.
While advocating for national Bitcoin adoption, Taiwan’s Financial Supervisory Commission (FSC) is establishing a framework for comprehensive regulation of virtual assets. On March 25, the FSC presented its draft for the “Virtual Asset Service Act,” aimed at overseeing the crypto industry while ensuring market integrity and protecting investors.
The proposed draft specifies stringent licensing requirements for Virtual Asset Service Providers (VASPs), including stipulations for organizational structure, capital standards, and the qualifications of personnel.
Additionally, it permits local banks to issue stablecoins linked to the New Taiwan dollar, contingent upon approval from the FSC and adherence to strict guidelines concerning issuance.
To maintain these standards, the FSC will have the authority to conduct audits, monitor compliance, and impose penalties for violations.
Taiwan FSC approves access to foreign crypto ETFs for professional investors, requiring strict assessments by brokers. A cautious yet vital move for digital assets.#CryptoRegulations #TaiwanCryptohttps://t.co/7FvpA5Lcex
— Finance Newso.com (@Finance Newso) September 30, 2024
The FSC’s commitment to fostering a secure and well-regulated crypto landscape extends beyond mere compliance. In early 2025, the agency initiated a pilot program for institutional crypto custody services and gave the green light to several foreign crypto exchange-traded funds (ETFs) for professional investors.
These efforts signal Taiwan’s ambition to evolve into a robust, regulated, and innovation-friendly hub for cryptocurrencies, a vision that lawmakers like Ko believe could see Bitcoin recognized as a sovereign asset.
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