Background and Proposal
Taiwanese legislator Jun-Chu Ko calls for the allocation of 0.1% of GDP ($600-700 million) in Bitcoin as part of a strategic reserve. The initiative aims to strengthen national security through economic resilience, particularly in light of geopolitical tensions with China.
Implementation Plan
- Technical Infrastructure: Cold-storage solutions with hardware wallets and multi-signature security are planned to minimize hacking attacks.
- Transparency Mechanisms: Regular independent audits will verify the reserves.
- International Expertise: Ko consults globally recognized crypto experts for implementation.
Geopolitical Context
The step follows similar initiatives in the USA under Donald Trump, where a strategic crypto reserve is already advanced. This reflects a global trend where states want to use digital assets as a tool against currency risks and sanctions.
Economic Implications
- Market Liquidity: A state demand of $600-700 million could support the Bitcoin price and reduce volatility.
- Investor Confidence: Institutional investors might view Taiwan’s step as a signal for regulatory acceptance.
- Michael Saylor (MicroStrategy) warns against hesitation: According to his forecast, Bitcoin could be traded at $1-10 million per coin with widespread acceptance by financial advisors.
Risk Assessment
| Factor | Description |
|---|---|
| Volatility | Bitcoin prices fluctuated between $75,000-$109,000 in 2025 |
| Regulation | Missing global standards for state crypto reserves |
| Security | Cyber attacks on state wallets remain a key risk |
The debate shows how digital assets are increasingly factored into geostrategic calculations with potentially disruptive effects on traditional financial systems.