Taiwan Bitcoin Reserve Proposal Targets $2.5B From $602B FX
Taiwan legislator Ko Ju-Chun has proposed a Bitcoin reserve, urging the government to allocate part of Taiwan’s roughly $602B foreign-exchange (FX) reserves to BTC. During an interpellation session on April 29, 2026, Ko submitted a Bitcoin Policy Institute (BPI) report to Taiwan’s Premier Cho Jung-tai and Central Bank of China Governor Yang Chin-long.
The argument is risk hedging. BPI says more than 80% of Taiwan’s FX reserves are held in USD-denominated assets, increasing exposure to USD devaluation and to scenarios where those assets could become inaccessible during China-related escalation. The floated initial allocation is about $2.5B in Bitcoin—below 0.5% of total reserves—positioned as a small “pilot” but a politically meaningful signal.
BPI frames the Bitcoin reserve case as different from gold logistics or fiat reliance on government systems, highlighting fixed supply, decentralization, and perceived resilience to seizure. It also contrasts BTC with freeze or SWIFT-style financial blockade risks.
The central bank has not approved the idea yet; it previously rejected Bitcoin as a reserve asset in 2025 citing volatility, liquidity, and custody concerns, though it runs a sandbox using seized BTC to test digital-asset behavior. For traders, this is not immediate adoption, but it strengthens the “Bitcoin reserve” narrative and could nudge BTC sentiment if any follow-up policy steps emerge.
International context: similar “national Bitcoin reserve” discussions have appeared in the US and Brazil, where legislation has been advanced or reintroduced.
Neutral
The proposal adds a supportive policy narrative for BTC (a “Bitcoin reserve” as a hedge against USD concentration and potential asset inaccessibility), but the plan is still at the motion/report stage with no approval from Taiwan’s central bank. The initial size (about $2.5B, under 0.5% of FX reserves) is unlikely to create immediate spot demand large enough to materially change BTC price in the short term.
In the near term, traders may see modest sentiment uplift because legislative momentum and international parallels (US/Brazil reserve discussions) can increase speculative interest. However, historical central-bank caution (rejection in 2025 over volatility/liquidity/custody) keeps expectations contained.
Over the longer term, any follow-up that moves from sandbox/testing to an approved reserve allocation would be the key bullish driver for BTC—yet that outcome is not confirmed in this news. Net effect on BTC price is therefore best described as neutral.