Tag: Treasury

The legislator Ko Ju-Chun suggests adding Bitcoin to national reserves.

Taiwan has 423 gold metric tons at its asset base.

New Hampshire, in the US, approved a law to include bitcoin in state reserves.

Taiwan is considering a significant policy change, one that could make Bitcoin join his national reserves.

Faced with inflationary pressure, world commercial tension and the growing dependence on US Treasury bonds., The country now wonders if its financial mattresses are really safe.

The legislator Ko Ju-Chun recently proposed the inclusion of Bitcoin in the combination of reserves of the Central Bank, citing its decentralized nature and fixed supply as strategic coverage against future financial instabilities.

The proposal reflects a broader reevaluation of traditional reserve assets, especially because more than 90% of the 577,000 million dollars in Taiwan currency reserves are currently linked to US Treasury bonds, which generates concerns about diversification and liquidity during crises.

Increased exchange risks and dependence on US Treasury bonds.

Taiwan’s economy, driven by exports, is especially sensitive to geopolitical changes and inflation tendencies.

With the growing tensions between the USA and China and the risk of interruptions in the supply chain, legislators are increasingly attentive to the vulnerabilities of the new Taiwanese dollar (NTD).

Currently, Taiwan has 423 gold metric tons and almost all his currencies in assets called American dollars.

Analysts point out that, although these have historically been reliable, their excessive concentration exposes the country to the monetary policy of the USA. Uu. Already possible sanctions in case relations deteriorate.

In a Speech against ParliamentKo Ju-Chun stressed that Taiwan needs “strategic flexibility” in the way he administers his reservations, especially in financial decoupling scenarios or restricted access to dollars.

Bitcoin floated as coverage, not as a replacement

The core of the proposal is not to change the current Taiwan reservation strategy, but diversify it.

KO’s plan plans to assign a small percentage of Taiwan reserves to Bitcoin, which, according to him, would provide a non -correlated asset that is accessible worldwide and cannot arbitrarily informed.

Bitcoin’s fixed supply of 21 million tokens, combined with its decentralized accounting system, is a key reason why it is being considered.

According to Professor Liu Yiru, from the National University of Taiwan, these characteristics make it particularly resistant to inflationary dilution, unlike fiduciary currencies, which central banks can expand during economic crises.

Former Prime Minister Chen Cong also intervened, stating that, although Bitcoin may not serve as a large -scale transactional currency, his role as a digital value reserve could help to safeguard Taiwan’s financial sovereignty.

Global impulse for Bitcoin reserves

Taiwan’s deliberation occurs at a time when other governments are also experiencing Bitcoin at the state level.

In the United States, New Hampshire recently approved the Bitcoin Reserve Law, which allows the inclusion of digital asset in its state reserves.

The measure has caused discussions in other US states and emerging markets that face high monetary inflation or instability.

Although Taiwan has not yet formalized any measure of this type, the conversation indicates a change in the way in which political leaders see cryptoactive, not only as speculative investments, but as potential components of national financial infrastructure.

In addition to the legislative interest, KO suggested that a working group be established to study viability, volatility and custody risks associated with Bitcoin reserves.

The Central Bank has not publicly responded to the proposal, although it is expected to be discussed more thoroughly in the next budgetary and monetary policy reviews.

The broader context of these debates also includes the need for Taiwan to balance its strong technological sector with the risks posed by its geopolitical location.

The diversification of reserve assets can serve not only to economic objectives, but also to a broader strategic autonomy.