‘USD debasement risk’ – Will Taiwan adopt a Bitcoin reserve now?

The Bitcoin Reserve race is not just limited to the U.S. Competitors and crypto critics are now showing interest in the idea of Bitcoin Reserve.

In a recent update, Taiwan, officially the Republic of China, is planning to reconsider the idea of a Bitcoin Reserve. For those unaware, this isn’t the first time the country has thought on these lines.

In fact, the first time the idea was proposed, it got ruled out in December, 2025. 

Now, coming up with a fresh perspective, in a research paper authored by Jacob Langenkamp, a civil servant for the U.S. Department of Defense, said, 

Taiwan would join 29 countries that have gained bitcoin exposure as of January 2026, a trend accelerated by the U.S. Strategic Bitcoin Reserve executive order.

Bitcoins Why had Taiwan rejected the Bitcoin Reserve in 2025?

That said, if we look back in 2025, Taiwan had stepped back because of Bitcoin’s high volatility and low liquidity compared to traditional assets like U.S. dollars or gold.

Additionally, operational and security risks, including potential vulnerabilities in storage, and compliance with anti-money laundering (AML), were other reasons behind saying ‘NO’ back then. 

However, with a huge $157 billion trade surplus, these concerns seem invalid, now. In fact, with over 80% of its foreign reserves held in USD, the perspective required some alteration.

Now, with the growing U.S. debt, the Fed’s monetary base expansion, and the worries around AI bubble bursts, Taiwan is leaning towards Bitcoin [BTC].

Langenkamp believes that Bitcoin can act as a hedge against geopolitical tensions and support Taiwan’s economy in times of war. 

Expressing fears about the ongoing turmoil, Langenkamp added, 

For Taiwan specifically, the American debt and deficit situation is nuanced. While Taiwan is not fully dollarized, 85-90% of its exports are estimated to be priced in USD, and more than 80% of the CBC reserves are in U.S. Treasuries. The country is heavily exposed to potential USD debasement.

Bitcoins Taiwan vs U.S and China’s Bitcoin holdings

This comes as Taiwan’s Bitcoin stash stands at 210 BTC worth $14M, just 0.001% of the total Bitcoin supply as per BitcoinTreasuries.Net. Meanwhile, the U.S holds 328,372 BTC worth $21,822 million.

Whereas China holds 190,000 BTC worth $12,619 million. 

Bitcoin traded at $66,420.97 at press time, after falling 3.12% in the past 24 hours. However, with Bitcoin dominance at 58.58%, BTC appears focused on longer-term positioning rather than short-term volatility.

Bitcoins Additional developments in the U.S

Amidst all these developments, two U.S. lawyers have proposed the “Mined in America Act,” introduced by Bill Cassidy and Cynthia Lummis.

The bill is meant to widen the scope of U.S.-based cryptocurrency mining while also reducing dependence on foreign supply chains. This new bill also codifies a Strategic Bitcoin Reserve, very much in line with earlier executive actions signed in 2025.

Bitcoins Final Summary

• In just 3 months, Taiwan, which once rejected Bitcoin Reserve, is now shifting its stance.
• With over 80% of foreign reserves held in USD assets and the growing concerns of USD debasements, Taiwan bends down to Bitcoin.