Taiwan is taking one of Asia’s most progressive steps toward sovereign crypto adoption. The Executive Yuan and the Central Bank have formally agreed to evaluate Bitcoin (BTC) as a potential strategic reserve asset and will launch a pilot program using seized BTC currently awaiting auction.
This initiative is a direct response to growing political and economic concerns over Taiwan’s heavy financial reliance on the U.S. dollar, with roughly 92% of its $577 billion in foreign exchange reserves held in U.S. Treasury bonds.
The plan is being spearheaded by legislator Dr. Ju-chun Ko, who has been vocal about the need for reserve diversification amid global inflation and rising geopolitical tensions.
“Bitcoin offers a unique hedge due to its decentralized and fixed-supply nature,” Ko told lawmakers, arguing that a complementary asset could strengthen the country’s financial resilience.
The central bank’s commitment to conduct a feasibility study and initiate the pilot with seized assets—estimated to be in the low millions of dollars—marks a cautious yet significant step. It mirrors actions taken by other nations: the U.S. established a Strategic Bitcoin Reserve in March 2025 using forfeited BTC, and countries like El Salvador and Argentina have also incorporated Bitcoin into their fiscal strategies.
The move toward government adoption comes as authorities continue to crack down on illicit crypto activity.
In August, Taiwanese prosecutors indicted 14 individuals in the nation’s largest crypto money-laundering case, a $75 million fraud that defrauded over 1,500 victims. The network, led by Shi Qiren, operated more than 40 fake crypto exchange storefronts, falsely claiming regulatory approval and funneling investor funds overseas.
The systematic fraud hinged on exploiting regulatory blind spots, highlighting the need for clearer oversight even as the government explores Bitcoin’s potential on its own balance sheet.
