Taiwan’s central bank will officially start exploring the possibility of establishing a Bitcoin reserve to diversify the nation’s holdings and reduce the country’s reliance on the US dollar.

Long-time Bitcoin proponent and one of the leading names behind Taiwan’s pro-Bitcoin push, Dr. Ko Ju-Chun, a legislator at the Taiwanese parliament, is leading the effort.

Ko announced the latest breakthrough in a Nov. 13 X post, noting that the central bank has agreed to run a pilot initiative where it would begin cataloging seized Bitcoin that has not yet been auctioned.

“Successfully secured commitments from the Executive Yuan and the central bank: they will study Bitcoin as a strategic reserve,” Ko said as he called upon the Bitcoin community “to show support and help Taiwan become Asia’s BTC hub.”

The initiative would be a joint effort between the Taiwanese government and Samson Mow, led JAN3, a Bitcoin technology and digital infrastructure company that specialises in helping nation-states adopt the flagship cryptocurrency within their financial systems.

Ko made a special mention of JAN3 CEO Samson Mow in his announcement. Mow is a veteran in the crypto space and has previously served in executive positions at firms like Blockstream and BTCC.

Currently, he is also an advisor to El Salvador, one of the leading crypto-friendly nations and the first to adopt Bitcoin as a legal tender.

Mow’s expertise could play a key role in positioning Taiwan as the first country in Southeast Asia to officially hold Bitcoin as part of its national reserves if the treasury plan goes through.

Taiwan currently holds around 432 tons of gold and approximately $577 billion in foreign currency as part of its reserves.

According to Ko, adding Bitcoin is expected to provide a complementary hedge against economic uncertainty and geopolitical risk.

When Ko first proposed the idea back in May during the national finance conference, he said Bitcoin’s decentralized nature and growing role as a sovereign hedge across several jurisdictions make it a suitable candidate for reserve diversification.

According to him, Bitcoin also has the potential to safeguard the country’s economic position in times of crisis, especially considering Taiwan’s heavy reliance on exports and the associated volatility in the New Taiwan dollar.

At the time, he suggested that Taiwan could allocate up to 5% of its reserves to Bitcoin as part of a strategic overhaul to strengthen the nation’s long-term financial resilience.

Taiwan will draft pro-Bitcoin regulations

Another major development is the confirmation that Taiwanese regulators will expedite “BTC-friendly” regulations that are expected to arrive in six months’ time. 

Taiwan’s Financial Supervisory Commission had started working on a regulatory framework for virtual assets and released a draft outlining licensing requirements for crypto service providers, stablecoin issuance standards, and enforcement mechanisms earlier this year.

Details regarding whether the FSC will also play a role in shaping the upcoming Bitcoin-specific policy initiative have not been disclosed. 

However, with both the Executive Yuan and the central bank now aligned on exploring Bitcoin’s role in the economy, it is safe to say it is opening up for more comprehensive integration.

Countries follow US lead

Ever since the US disclosed plans to explore Bitcoin reserves with support from President Donald Trump, a number of nations have perceived it as a sign of changing monetary priorities and drawn up respective national strategies to counter Western dominance in global finance.

Over the past few months, several countries, including Kazakhstan, Brazil, France, and Sweden, have introduced proposals or outlined frameworks aimed at incorporating Bitcoin into their national or institutional reserves.

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