Ko Ju-jun urges the central bank to plan for a “stablecoin strategic reserve,” while Yang Chin-long gives a tentative okay: as time and circumstances change, adjustments will be made

Taiwanese legislator Ko Ju-jun recently raised during questioning at the Legislative Yuan that Taiwan should assess the feasibility of including stablecoins in foreign exchange reserves; although the governor of the Central Bank, Yang Chin-lung, said his stance had not changed, he unusually added the phrase “times and circumstances will change,” which outside observers interpreted as a signal of policy easing.
(Backgrounder: Premier Cho Rong-tai pledged: by year-end, inventory “how many bitcoins the Taiwanese government has”! The Central Bank will submit an assessment report on BTC reserves)
(Background add-on: Taiwan’s central bank turns hawkish: if oil prices break $100, it does not rule out tightening the New Taiwan dollar; Yang Chin-lung says: closely watch Q2 developments)

Table of contents

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• Under geopolitical pressure, Bitcoin is the “only asset” that can be used in both scenarios
• Six international models: countries have already rolled them out in different ways
• Is Bitcoin too volatile? Ko Ju-jun: start with stablecoins
• Yang Chin-lung’s response: the current situation is unchanged, but the future is not ruled out

Central Bank Governor Yang Chin-lung has let slip some indication; although it was only a single line—“times and circumstances will change”—it stands out as rare against his otherwise firm posture in recent years. Recently, Democratic Progressive Party legislator Ko Ju-jun, during questioning at the Legislative Yuan’s Finance Committee, again asked the Central Bank to study the feasibility of including stablecoins or Bitcoin in foreign exchange reserves.

In response, Yang Chin-lung said the Central Bank’s attitude has not changed for now, but stressed that it will make “necessary adjustments depending on changes in circumstances” in the future. Many observers interpreted this as opening room for a shift in policy stance.

Under geopolitical pressure, Bitcoin is the “only asset” that can be used in both scenarios

The core of Ko Ju-jun’s argument is built on Taiwan’s unique geopolitical situation. He said that whether facing scenarios of “maritime blockade” or “full-scale invasion,” compared with the U.S. dollar and gold, Bitcoin is the only reserve asset that can remain fully accessible, sovereignty-independent, and usable under both conditions.

Both the U.S. dollar and gold face the risk of being impossible to schedule for actual use under scenarios of physical blockade or financial sanctions; however, Bitcoin’s decentralized nature means it does not rely on any physical infrastructure or third-party intermediaries, and in theory it can be transferred across borders wherever a network connection exists.

Ko Ju-jun also cited a recent report from a U.S. think tank, which argues that Taiwan is “quite suitable” to hold a certain amount of Bitcoin as a reserve asset, listing Taiwan’s special geopolitical environment as one of the main supporting arguments.

Six international models: countries have already rolled them out in different ways

To strengthen his case, Ko Ju-jun listed countries and models that already hold Bitcoin or virtual assets in different forms, showing the diversity of international trends:

The United States and El Salvador hold it as official strategic reserves; Bhutan and Russia accumulate through state-supported mining operations; China and the United Kingdom retain, seize, and confiscate virtual assets; Luxembourg invests its sovereign wealth fund into Bitcoin-related exchanges; during the war, Ukraine accepted international donations in the form of Bitcoin; and the Swiss central bank indirectly intervenes in the market by holding stocks whose value depends on Bitcoin.

Ko Ju-jun emphasized that these six models show that holding virtual assets is not a single-option choice. Each country selects the most suitable entry approach based on its own conditions, and Taiwan can also find a reference framework from them.

Is Bitcoin too volatile? Ko Ju-jun: start with stablecoins

In response to the Central Bank’s long-standing stance of maintaining reservations about the rollout due to the violent price volatility of Bitcoin, Ko Ju-jun proposed a fallback alternative this time: start with stablecoins.

He pointed out that stablecoins have traits such as convenient cross-border circulation, fast transfer speeds, and the ability to operate instantly in digital environments. Their prices are also relatively more stable than Bitcoin and have higher liquidity, making them easier to incorporate into a central bank risk-management framework.

The data also supports this suggestion: stablecoins had a total transaction volume of as much as $46 trillion last year. Their circulation scale and market activity have already reached a fairly high level, and they are not merely a financial tool that remains at the conceptual stage.

Ko Ju-jun also once again clarified the boundaries of his proposal. He stressed that he is not seeking a large-scale restructuring of the foreign exchange reserve structure. Instead, from the perspective of “small amounts and risk diversification,” he calls for a cautious assessment of the feasibility of stablecoins as a tool for a small portion of strategic reserves.

Yang Chin-lung’s response: the current situation is unchanged, but the future is not ruled out

Yang Chin-lung, the Central Bank governor, in his response, kept his language equally cautious, but the meaning left room for flexibility. He said the Central Bank’s attitude toward including stablecoins or Bitcoin in foreign exchange reserves “has not changed at present,” and at the same time added “times and circumstances will change,” and that in the future it will make necessary adjustments as circumstances evolve.

It is worth noting that at the end of last year, Taiwan’s Central Bank had already submitted reports covering both the pros and cons of whether “Bitcoin should be used as a central bank reserve asset,” indicating that attention to this issue was not without any foundation. Ko Ju-jun welcomed this, saying it demonstrated an openness toward emerging financial topics.

In Ko Ju-jun’s view, as an economy that is highly dependent on foreign trade and is also located in a region sensitive to geopolitical tensions, Taiwan strengthening the resilience and diversification of its asset allocation should be part of a long-term strategy in the first place. Whether stablecoins have a chance to become a “small piece of the puzzle” for foreign exchange reserves still awaits the Central Bank’s clearer answer in its future “changes in times and circumstances.”