Taiwan Considers Bitcoin Reserves Amid Rising Calls For USD Diversification

Core Viewpoint - Taiwan's government and central bank are considering incorporating Bitcoin as a strategic reserve asset amid calls for diversification away from the U.S. dollar [1][6]. Group 1: Bitcoin as a Reserve Asset - Legislative Yuan Member Cho Jung-tai has been advocating for a national Bitcoin reserve since May, suggesting it could enhance national security and financial resilience [2]. - The initial pilot for Bitcoin reserves will utilize BTC seized by law enforcement [1]. Group 2: Current Reserve Composition and Calls for Diversification - Taiwan's central bank reserves are heavily concentrated in U.S. dollars and Treasuries, prompting discussions on the need for diversification [6]. - Former Premier Chen Chong has criticized the central bank for not stockpiling gold reserves, noting that countries like France and Germany hold around two-thirds of their reserves in gold [4]. - Chen Chong has emphasized the risks of overexposure to the U.S. market and called for a more diversified balance sheet to promote long-term security [5]. Group 3: Global Context and Trends - A survey of 75 central bank reserve managers revealed that 60% are looking to diversify their portfolios in the next 12-24 months, driven by geopolitical risks and policy uncertainty [8]. - Additionally, 73% of central banks expect the share of U.S. dollars in their reserves to decline in the coming years [8].