Bitcoin Policy Institute: “Taiwan needs to consider bitcoin reserves…must brace for China’s military pressure”

A recommendation has emerged that Taiwan should consider bitcoin (BTC) as a national reserve asset to hedge geopolitical risks.

According to Cointelegraph on the 1st (local time), Jacob Langenkamp, a researcher at the Bitcoin Policy Institute, argued in a report that “under China’s military pressure, bitcoin could be the only reserve asset that remains fully accessible.”

He explained, “If China imposes a blockade or invades, gold is difficult to move physically and U.S. dollar assets could face restrictions, but bitcoin can be accessed without physical transfer.”

Taiwan’s central bank reviewed the introduction of bitcoin reserves last year but put it on hold, citing volatility, liquidity and custody issues.

Langenkamp said, “The central bank’s concerns are valid, but custody, liquidity and volatility issues can be addressed through institutional measures.”

He added, “Alongside gold, bitcoin can serve as a hedge against a decline in the dollar’s value, and if sovereign adoption expands in the future, it could also benefit from price appreciation.”

The report also flagged Taiwan’s heavy reliance on the dollar as a risk. At least 80% of Taiwan’s foreign exchange reserves are composed of U.S. dollar assets, leaving it vulnerable to shifts in U.S. monetary policy, it said.

Meanwhile, Taiwan currently holds about 210 bitcoin. The holdings were seized during criminal investigations and are worth about $14 million.