Taiwan’s justice ministry currently holds 210 Bitcoin, seized from criminal activities, valued at approximately $14 million. Most governments might regard this as a mere footnote. However, the Bitcoin Policy Institute (BPI) believes it should be viewed as a foundational element for Taiwan’s national strategy.
A Case Built On Worst-Case Scenarios
In a report released on April 3, 2026, BPI research fellow Jacob Langenkamp made a compelling argument for establishing a national Bitcoin reserve in Taiwan. This initiative is not merely a financial maneuver but a strategic measure to shield the nation from potential Chinese military aggression or blockades.
Langenkamp’s rationale is direct: Should China impose a blockade, traditional assets like gold become immobile, while dollar reserves could face freezing. Bitcoin, on the other hand, offers unique advantages as it requires no physical transport and remains accessible under even the direst circumstances.
Despite these potential benefits, Taiwan’s central bank previously dismissed the idea of a Bitcoin reserve, citing its volatility, security challenges, and limited liquidity as significant concerns. Instead, a preference was shown for the US dollar as a more stable reserve option. However, Langenkamp acknowledges these concerns, advocating for solutions through enhanced institutional expertise in custody and risk management.
The Dollar Problem Analysts Say Taiwan Is Ignoring
The overarching concern highlighted in the report is Taiwan’s heavy dependence on the US dollar. Approximately 80% of the central bank’s reserves are denominated in dollars, and the majority of the island’s trade flows through the same currency.
Langenkamp noted various pressures that might diminish the dollar’s value over time — including escalating US government debt, the Federal Reserve’s monetary policies, potential downturns in AI valuations, and decreasing revenues from Taiwan’s semiconductor sector. In his view, Bitcoin could coexist with gold to create a protective barrier against these risks, enabling Taiwan’s central bank to stay ahead of possible global shifts.
Despite its earlier reservations, Taiwan’s central bank has not entirely closed the door on digital assets. Following its December assessment, officials indicated that they would continue to experiment with digital asset technology through a sandbox program involving cryptocurrencies presently held by the government.
Importantly, the 210 Bitcoin figure was disclosed by lawmaker Ko Ju-Chun through social media last year. Data from crypto treasury tracker BitBo suggests that if recognized officially, these holdings would position Taiwan seventh among countries with Bitcoin reserves, right behind El Salvador and ahead of Finland. Currently, Taiwan is absent from BitBo’s national reserve rankings.
Whether the Taiwanese government will act on the recommendations presented in the BPI report remains uncertain. The institute lacks formal influence on national policy decisions, and the central bank’s stance has remained unchanged to date.
Nonetheless, this report introduces a fresh perspective in the ongoing global discussion about Bitcoin as a state-level asset — a discourse that transcends economics to encompass critical considerations regarding a nation’s access to its own financial resources in times of crisis.
Featured image from Unsplash, chart from TradingView
