US
President Trump has proposed the establishment of a "BTC national strategic reserve", which has sparked discussions among multiple US states, as well as governments, central banks, and the public around the world on establishing BTC reserves. This trend has now reached Taiwan.
On Taiwan's public policy online participation platform, a proposal titled "Taiwan BTC Strategic Reserve Plan" has recently appeared, and the proposal has passed the platform's review and entered the endorsement stage.
Taiwan's civil society advocates the establishment of a 'BTC strategic reserve'
The proposal states that in order to respond to the fluctuations in the global financial market, enhance Taiwan's financial security and international competitiveness, the government should establish a "BTC strategic reserve mechanism" as part of the national digital asset reserve, following the management approach of the "gold reserve", and gradually incorporate it into fiscal policy and financial stability frameworks.
According to the proponent YANSUG, the specific recommendations include:
Establish a national BTC reserve mechanism
The central bank or the Ministry of Finance should designate a dedicated institution to be responsible for it, using a long-term and stable purchasing strategy (such as dollar cost averaging, DCA) to gradually accumulate BTC reserves, avoiding the impact of market volatility on capital allocation. An initial reserve target can be set, such as 0.1% of GDP as a pilot, and gradually expanded.
(Editor's note: Taiwan's estimated overall GDP for 2024 is about 25 trillion NTD, and if 0.1% is used for the pilot purchase, it means that 25 billion NTD can be used to purchase BTC initially.)
Utilize BTC as a strategic financial tool
BTC can be part of the foreign exchange reserve assets, reducing the reliance on the US dollar as a single currency, and enhancing Taiwan's financial independence. When international economic crises or financial turmoil occur, a portion of the BTC reserves can be used to hedge against the risks of traditional financial assets.
Promote regulatory and supervisory framework adjustments
Referring to the central bank's regulation of digital assets in the US and Europe, a "National Digital Asset Reserve Act" should be formulated to ensure the legality and transparency of the BTC reserves. Establish a professional supervisory agency to ensure the storage security of BTC and prevent asset loss or hacker attacks.
Support the development of the digital asset and blockchain industry
The government's holding of BTC can help increase market recognition and further attract domestic and foreign cryptocurrency industry investments, promoting Taiwan to become the Asia-Pacific blockchain finance center. Part of the BTC reserves can be considered to generate yields through decentralized finance (DeFi) tools, improving capital efficiency.
Improve the investment efficiency of government funds such as labor insurance, national health insurance, and the new labor pension system
In its latest investment outlook report, the world's largest asset management company BlackRock recommends that investors include BTC in their diversified asset portfolios, with a suggested allocation of up to 2%; to balance risk and investment returns, government funds can start with a small pilot investment to improve the investment efficiency of these funds.
Can Taiwan establish a BTC reserve and become the Asia-Pacific Web3 center?
The proponent further argues that the establishment of a BTC strategic reserve in Taiwan could bring many benefits, such as:
- Strengthening national fiscal and foreign exchange reserve diversification: BTC can serve as an anti-inflationary asset, hedge against the devaluation of fiat currency, reduce Taiwan's dependence on a single currency (such as the US dollar), and enhance financial stability.
- Promoting the development of Taiwan's digital finance and blockchain industry: Government BTC reserves can enhance Taiwan's international financial reputation and attract blockchain and fintech investments; it can also indirectly drive the growth of the domestic blockchain industry, promote the legalization of digital assets, and accelerate the development of digital finance, making Taiwan a potential crypto and Web3 innovation center in the Asia-Pacific region.
- Enhancing national economic resilience and future adaptability: BTC can play a hedging role during global financial crises or currency market volatility. If global monetary policy shifts towards digital currencies in the future, Taiwan can be the first to have sufficient BTC reserves and experience, seizing market opportunities.
- Enhancing Taiwan's international influence and financial discourse power: Participating in the global BTC strategic reserve layout to avoid marginalization.
- Branding Taiwan as a BTC-friendly country to boost tourism visibility
Becomes a case if it receives 5,000 endorsements within 60 days
According to the regulations, if a public policy proposal on the Public Policy Network Participation Platform receives more than 5,000 endorsements within 60 days after the platform opens for endorsement, it becomes a case, and the competent authority must respond on the platform within 60 days after the case is established, and a meeting may be held to discuss the proposal. Currently, the proposal still needs more than 4,800 endorsements to become a case.If you also want to endorse this proposal, please register on the official website and pass the email and mobile phone verification to endorse...
The proposer YANSUG commented:
Whether the response is approved or rejected, it is a victory, at least in the next election I can know the current ruling party and the next ruling party's stance on the crypto market.
