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insurance

Bitcoin

Reserve

Taiwan should reconsider adopting Bitcoin as a reserve asset to hedge against global turmoil and the risk of war, according to a research fellow at the Bitcoin Policy Institute.In a report on Tuesday, Jacob Langenkamp <a href="https://cdn.prod.website-files.com/68f7cddcae0b61add08140fc/69cc415b693433b742a06e9f_Economic%20and%20Geopolitical%20Benefits%20of%20a%20Taiwan%20Bitcoin%20Reserve--BPI%20Research%20Paper.pdf" rel="noopener noreferrer nofollow">said</a> that should China pursue reunification with Taiwan by military force, either through a blockade or full invasion, Bitcoin (<a rel="noopener noreferrer nofollow">BTC</a>) would be the only reserve asset that would remain fully accessible and spendable.“Uniquely for Taiwan, Bitcoin provides geopolitical resilience: in a PRC blockade or invasion, gold is stranded or seized and USD reserves face potential restrictions, but Bitcoin remains fully accessible without physical transport,” he added.<figure><img src="https://s3.cointelegraph.com/uploads/2026-04/019d4c08-9cc7-7777-8cd7-22c0be4e87ae.png" alt="Taiwan should reconsider Bitcoin reserve in case of war, says think tank"><figcaption>Bitcoin is more resilient during turmoil than other alternatives. Source: <a href="https://cdn.prod.website-files.com/68f7cddcae0b61add08140fc/69cc415b693433b742a06e9f_Economic%20and%20Geopolitical%20Benefits%20of%20a%20Taiwan%20Bitcoin%20Reserve--BPI%20Research%20Paper.pdf" rel="noopener noreferrer nofollow">Bitcoin Policy Institute</a></figcaption></figure>Nation-states have begun to explore the idea of launching strategic Bitcoin reserves, seen as a bullish signal for Bitcoin.Last year, Taiwan’s central bank <a href="https://cointelegraph.com/news/taiwan-bitcoin-reserve-report-2025" rel="noopener noreferrer nofollow">sought to investigate establishing a national Bitcoin reserve</a>. However, the bank ruled it out in December, citing volatility, liquidity and custody concerns and instead identified the US dollar as a safer alternative.<h2 id="us-currency-debasement-is-a-risk-to-taiwan-langenkamp">US currency debasement is a risk to Taiwan: Langenkamp</h2>Taiwan is heavily exposed to the risks of US dollar debasement, Langenkamp said, because its central bank reserves are at least 80% in USD-denominated assets, as is most of its trade.Growing US debt, Federal Reserve monetary expansion, a <a href="https://cointelegraph.com/news/ai-center-stage-microsoft-google-q2-earnings" rel="noopener noreferrer nofollow">potential AI market downturn</a> and declining semiconductor revenues could also accelerate dollar debasement, he said.&nbsp;<figure><img src="https://s3.cointelegraph.com/uploads/2026-04/019d4c08-a278-707c-be97-5bc4d8322902.png" alt="Taiwan should reconsider Bitcoin reserve in case of war, says think tank"><figcaption>Several factors could accelerate US dollar debasement. Source: <a href="https://cdn.prod.website-files.com/68f7cddcae0b61add08140fc/69cc415b693433b742a06e9f_Economic%20and%20Geopolitical%20Benefits%20of%20a%20Taiwan%20Bitcoin%20Reserve--BPI%20Research%20Paper.pdf" rel="noopener noreferrer nofollow">Bitcoin Policy Institute</a></figcaption></figure>“Bitcoin can couple with gold to offer that hedge against USD debasement. It can provide another opportunity for the CBC to adopt a reserve asset before its peers and benefit the people of Taiwan with the subsequent price appreciation,” Langenkamp added.<blockquote> “It can offer geopolitical insurance against scenarios that hopefully do not come to pass. It can open new methods of trade with less friction. Bitcoin can provide Taiwan with a great measure of monetary resilience.”
</blockquote>Related: <a href="https://cointelegraph.com/features/us-bitcoin-reserve-no-plan-stack-sats" rel="noopener noreferrer nofollow">US Bitcoin reserve still has no plan to stack sats</a>Langenkamp also argued that the CBC's concerns about Bitcoin's liquidity and volatility are valid, but contended that both issues will <a href="https://cointelegraph.com/news/bitcoin-drawdown-much-less-dramatic-this-cycle-fidelity" rel="noopener noreferrer nofollow">diminish as the asset matures</a> and gains adoption among nations.“The CBC's concerns are valid but addressable with institutional expertise on custody, liquidity, and volatility,” he added.<h2 id="taiwan-has-at-least-210-bitcoin">Taiwan has at least 210 Bitcoin</h2>Despite ruling out a Bitcoin reserve for now, the CBC committed to testing the technology further in a digital asset sandbox using the crypto the country already holds.Taiwanese lawmaker Ko Ju-Chun <a href="https://x.com/dAAAb/status/2001593894337958046" rel="noopener noreferrer nofollow">revealed</a> on X last year that the country’s Ministry of Justice holds 210 Bitcoin, worth $14 million, confiscated during criminal investigations.BitBo doesn’t <a href="https://bitbo.io/treasuries/countries/" rel="noopener noreferrer nofollow">list</a> Taiwan in its country reserve rankings; its disclosed holdings would make it the seventh-largest national Bitcoin holder, behind El Salvador but ahead of Finland.Magazine: <a href="https://cointelegraph-magazine.com/newbies-guide-surviving-crypto-winter/" rel="noopener noreferrer nofollow">A newbie’s guide to surviving crypto winter</a>

Taiwan should reconsider Bitcoin reserve in case of war, says think tank

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