{"id":857667,"date":"2025-06-24T01:12:22","date_gmt":"2025-06-24T06:12:22","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/24\/taiwan-eyes-bitcoin-as-hedge-against-inflation-and-us-treasury-exposure\/"},"modified":"2025-06-24T01:12:22","modified_gmt":"2025-06-24T06:12:22","slug":"taiwan-eyes-bitcoin-as-hedge-against-inflation-and-us-treasury-exposure","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/24\/taiwan-eyes-bitcoin-as-hedge-against-inflation-and-us-treasury-exposure\/","title":{"rendered":"Taiwan eyes Bitcoin as hedge against inflation and US Treasury exposure"},"content":{"rendered":"<p>Bitcoins <\/p>\n<div data-site=\"CoinJournal\">\n<div data-site=\"CoinJournal\">\n<picture><source  type=\"image\/webp\" media=\"(min-width: 750px)\"><source  type=\"image\/webp\"><source  type=\"image\/jpeg\" media=\"(min-width: 750px)\"><source  type=\"image\/jpeg\"><img decoding=\"async\" src=\"https:\/\/coinjournal.net\/wp-content\/uploads\/2025\/05\/image-36.png\" alt=\"bitcoins Taiwan eyes Bitcoin as hedge against inflation and US Treasury exposure\" width=\"100%\" height=\"100%\">\n<\/picture>                            <\/div>\n<ul>\n<li>Lawmaker Ko Ju-Chun suggests adding Bitcoin to national reserves.<\/li>\n<li>Taiwan has 423 metric tons of gold in its asset base.<\/li>\n<li>New Hampshire in the US passed a law to include Bitcoin in state reserves.<\/li>\n<\/ul>\n<p class data-start=\"151\" data-end=\"643\">Taiwan is considering a significant policy shift\u2014one that could see Bitcoin join its national reserves.<\/p>\n<p class data-start=\"151\" data-end=\"643\">Faced with inflationary pressure, global trade tension, and increasing reliance on US Treasury bonds, the country is now questioning whether its financial buffers are truly secure.<\/p>\n<p class data-start=\"151\" data-end=\"643\">Legislator Ko Ju-Chun recently proposed the inclusion of Bitcoin in the central bank\u2019s reserve mix, citing its decentralised nature and fixed supply as a strategic hedge against future financial instability.<\/p>\n<p class data-start=\"645\" data-end=\"921\">The proposal reflects a broader reassessment of traditional reserve assets, especially as over 90% of Taiwan\u2019s US$577 billion in foreign exchange reserves are currently tied to US Treasuries, raising concerns about diversification and liquidity during crises.<\/p>\n<h2 class data-start=\"923\" data-end=\"979\">Rising currency risks and dependency on US Treasuries<\/h2>\n<p class data-start=\"981\" data-end=\"1256\">Taiwan\u2019s export-led economy is particularly sensitive to geopolitical shifts and inflation trends.<\/p>\n<p class data-start=\"981\" data-end=\"1256\">With growing tensions between the US and China and the risk of supply chain disruptions, lawmakers are increasingly alert to the vulnerabilities of the New Taiwan Dollar (NTD).<\/p>\n<p class data-start=\"1258\" data-end=\"1776\">Currently, Taiwan holds 423 metric tons of gold and nearly all its foreign exchange in US dollar-denominated assets.<\/p>\n<p class data-start=\"1258\" data-end=\"1776\">Analysts note that while these have been historically reliable, their over-concentration exposes the country to US monetary policy and potential sanctions should relations deteriorate.<\/p>\n<p class data-start=\"1258\" data-end=\"1776\">In an <a href=\"https:\/\/www.youtube.com\/watch?v=wOCXYY-qJbE\">address to parliament<\/a>, Ko Ju-Chun highlighted that Taiwan needs \u201cstrategic flexibility\u201d in how it manages its reserves, especially under scenarios of financial decoupling or restricted access to dollar markets.<\/p>\n<h2 class data-start=\"1778\" data-end=\"1826\">Bitcoin floated as a hedge, not a replacement<\/h2>\n<p class data-start=\"1828\" data-end=\"2122\">The core of the proposal is not to upend Taiwan\u2019s current reserve strategy but to diversify it.<\/p>\n<p class data-start=\"1828\" data-end=\"2122\">Ko\u2019s plan calls for allocating a small percentage of Taiwan\u2019s reserves to Bitcoin, which he argues would provide an uncorrelated asset that is globally accessible and cannot be arbitrarily inflated.<\/p>\n<p class data-start=\"2124\" data-end=\"2472\">Bitcoin\u2019s fixed supply of 21 million tokens, combined with its decentralised ledger system, is a key reason why it is being considered.<\/p>\n<p class data-start=\"2124\" data-end=\"2472\">According to Professor Liu Yiru of National Taiwan University, these features make it particularly resistant to inflationary dilution\u2014unlike fiat currencies, which central banks can expand during economic shocks.<\/p>\n<p class data-start=\"2474\" data-end=\"2685\">Former Premier Chen Cong also weighed in, stating that although Bitcoin may not serve as a transactional currency at scale, its role as a digital store of value could help safeguard Taiwan\u2019s financial sovereignty.<\/p>\n<h2 class data-start=\"2687\" data-end=\"2726\">Global momentum for Bitcoin reserves<\/h2>\n<p class data-start=\"2728\" data-end=\"3104\">Taiwan\u2019s deliberation comes at a time when other governments are also experimenting with Bitcoin at the state level.<\/p>\n<p class data-start=\"2728\" data-end=\"3104\">In the US, New Hampshire recently passed the Bitcoin Reserve Act, allowing the inclusion of the digital asset in its state reserves.<\/p>\n<p class data-start=\"2728\" data-end=\"3104\">The move has prompted discussions in other American states and emerging markets facing high inflation or currency instability.<\/p>\n<p class data-start=\"3106\" data-end=\"3333\">While Taiwan has yet to formalise any such measure, the conversation signals a shift in how policymakers view crypto-assets, not merely as speculative investments but as potential components of national financial infrastructure.<\/p>\n<p class data-start=\"3335\" data-end=\"3659\">In addition to legislative interest, Ko suggested that a task force be set up to study the feasibility, volatility, and custodial risks associated with Bitcoin reserves.<\/p>\n<p class data-start=\"3335\" data-end=\"3659\">The central bank has not publicly responded to the proposal, though it is expected to be discussed further in upcoming budget and monetary policy reviews.<\/p>\n<p class data-start=\"3661\" data-end=\"3918\">The broader context of these debates also includes Taiwan\u2019s need to balance its strong technological sector with the risks posed by its geopolitical location.<\/p>\n<p class data-start=\"3661\" data-end=\"3918\">Diversifying reserve assets may serve not only economic goals but also broader strategic autonomy.<\/p>\n<div>\n<hr>\n<h6>Share this article<\/h6>\n<hr>\n<h6>Categories<\/h6>\n<hr>\n<h6>Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p> Diya Poddar <a href=\"https:\/\/coinjournal.net\/news\/taiwan-eyes-bitcoin-as-hedge-against-inflation-and-us-treasury-exposure\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lawmaker Ko Ju-Chun suggests adding Bitcoin to national reserves. Taiwan has 423 metric tons of gold in its asset base. New Hampshire in the US passed a law to include Bitcoin in state reserves. Taiwan is considering a significant policy shift\u2014one that could see Bitcoin join its national reserves. Faced with inflationary pressure, global trade<\/p>\n","protected":false},"author":1,"featured_media":857668,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4041,34004],"tags":[11476],"class_list":["post-857667","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bitcoin","category-taiwan","tag-bitcoins"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/857667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=857667"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/857667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/857668"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=857667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=857667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=857667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}