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Analyst from Bitcoin Policy Institute assesses the role of Bitcoin in Taiwan’s state reserves., 2026/04/02 12:30:44
Jacob Langenkamp, a researcher at the Bitcoin Policy Institute (BPI), has suggested that Taiwanese authorities consider the inclusion of Bitcoin in their strategic state reserves. He believes this could reduce dependence on the US dollar and enhance the country’s resilience to geopolitical risks.
Langenkamp argues that in the event of a military conflict with China, such as a blockade or full-scale invasion, Bitcoin could be the only reserve asset available for use.
“The uniqueness of Bitcoin for Taiwan lies in its geopolitical resilience: in the event of an attack from the PRC, gold could be blocked or confiscated, and restrictions could be placed on dollar reserves. Only Bitcoin would remain fully accessible without physical transportation,” Langenkamp stated.
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In 2024, the Central Bank of Taiwan explored the possibility of creating reserves in Bitcoin but later abandoned the idea. The regulator cited risks associated with volatility, liquidity, and the storage of cryptocurrency, deeming the US dollar a more reliable asset.
Langenkamp acknowledges that the concerns of the Central Bank of Taiwan regarding Bitcoin’s volatility and liquidity are valid. However, he believes that as cryptocurrency adoption increases, these risks may diminish. At the same time, the value of the dollar could be affected by rising US national debt, Federal Reserve policies, as well as potential declines in semiconductor export revenues and a possible downturn in the artificial intelligence market.
“Bitcoin, alongside gold, can protect Taiwan from the depreciation of the US dollar. It can serve as a hedge against adverse scenarios and expand the possibilities for international transactions. The Central Bank of Taiwan has the opportunity to include Bitcoin in its reserves ahead of other countries,” Langenkamp concluded.
In 2024, the Financial Supervisory Commission of Taiwan (FSC) tightened registration requirements for crypto services to comply with anti-money laundering (AML) regulations and “Know Your Customer” (KYC) procedures.
