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Geopolitical Score 35 Neutral

Think Tank Urges Taiwan to Reconsider Bitcoin as Reserve Asset Amid Geopolitical Tensions

Apr 02, 2026 03:03 UTC
BTC-USD, ^TWII, CL=F
Medium term

A research fellow at the Bitcoin Policy Institute has recommended that Taiwan explore Bitcoin as a reserve asset to mitigate risks from potential conflict with China. The suggestion follows concerns over the vulnerability of traditional reserves during a military confrontation.

  • A think tank recommends Bitcoin as a reserve asset for Taiwan amid geopolitical risks.
  • Taiwan’s Ministry of Justice holds 210 Bitcoins, valued at $14 million, from criminal investigations.
  • The Central Bank of China previously explored a Bitcoin reserve but rejected it due to volatility and custody concerns.
  • Bitcoin is suggested as a hedge against U.S. dollar debasement, with 80% of Taiwan’s reserves in USD.
  • The CBC plans to test digital assets in a sandbox using existing Bitcoin holdings.
  • The think tank argues that Bitcoin’s liquidity and volatility issues will diminish with broader adoption.

A research fellow at the Bitcoin Policy Institute has advised Taiwan to reconsider Bitcoin as a strategic reserve asset, particularly in the context of potential military conflict with China. Jacob Langenkamp, in a recent report, highlighted that Bitcoin could remain accessible during a blockade or invasion, unlike gold or U.S. dollars, which might be restricted or seized. Last year, Taiwan’s Ministry of Justice was revealed to hold 210 Bitcoins, worth $14 million, confiscated from criminal investigations. While the Central Bank of China (CBC) previously explored the idea of a national Bitcoin reserve, it ultimately rejected the proposal in December due to concerns over volatility, liquidity, and custody. Langenkamp argues that Bitcoin could serve as a hedge against U.S. dollar debasement, given that at least 80% of Taiwan’s central bank reserves are in USD-denominated assets. He also noted that growing U.S. debt and Federal Reserve monetary expansion could accelerate dollar depreciation. The CBC has committed to further testing the technology in a digital asset sandbox using the Bitcoin it already holds. Despite the CBC’s current stance, Langenkamp believes that Bitcoin’s liquidity and volatility concerns are addressable as the asset matures and gains wider adoption among nations.

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