‘USD debasement risk’ – Will Taiwan adopt a Bitcoin reserve now?

The Bitcoin Reserve race isn’t just restricted to the U.S. Rivals and crypto critics at the moment are exhibiting curiosity within the concept of Bitcoin Reserve.

In a latest replace, Taiwan, formally the Republic of China, is planning to rethink the thought of a Bitcoin Reserve. For these unaware, this isn’t the primary time the nation has thought on these traces.

In truth, the primary time the thought was proposed, it acquired dominated out in December, 2025. 

Now, developing with a contemporary perspective, in a analysis paper authored by Jacob Langenkamp, a civil servant for the U.S. Division of Protection, mentioned, 

Taiwan would be part of 29 international locations which have gained bitcoin publicity as of January 2026, a development accelerated by the U.S. Strategic Bitcoin Reserve govt order.

Why had Taiwan rejected the Bitcoin Reserve in 2025?

That mentioned, if we glance again in 2025, Taiwan had stepped again due to Bitcoin’s excessive volatility and low liquidity in comparison with conventional property like U.S. {dollars} or gold.

Moreover, operational and safety dangers, together with potential vulnerabilities in storage, and compliance with anti-money laundering (AML), had been different causes behind saying ‘NO’ again then. 

Nevertheless, with an enormous $157 billion commerce surplus, these considerations appear invalid, now. In truth, with over 80% of its international reserves held in USD, the attitude required some alteration.

Now, with the rising U.S. debt, the Fed’s financial base growth, and the concerns round AI bubble bursts, Taiwan is leaning in the direction of Bitcoin [BTC].

Langenkamp believes that Bitcoin can act as a hedge in opposition to geopolitical tensions and assist Taiwan’s economic system in instances of warfare. 

Expressing fears concerning the ongoing turmoil, Langenkamp added, 

For Taiwan particularly, the American debt and deficit scenario is nuanced. Whereas Taiwan just isn’t absolutely dollarized, 85-90% of its exports are estimated to be priced in USD, and greater than 80% of the CBC reserves are in U.S. Treasuries. The nation is closely uncovered to potential USD debasement.

Taiwan vs U.S and China’s Bitcoin holdings

This comes as Taiwan’s Bitcoin stash stands at 210 BTC value $14M, simply 0.001% of the overall Bitcoin provide as per BitcoinTreasuries.Net. In the meantime, the united statesholds 328,372 BTC value $21,822 million.

Whereas China holds 190,000 BTC value $12,619 million. 

Bitcoin traded at $66,420.97 at press time, after falling 3.12% previously 24 hours. Nevertheless, with Bitcoin dominance at 58.58%, BTC seems targeted on longer-term positioning somewhat than short-term volatility.

Extra developments within the U.S

Amidst all these developments, two U.S. legal professionals have proposed the “Mined in America Act,” launched by Invoice Cassidy and Cynthia Lummis.

The invoice is supposed to widen the scope of U.S.-based cryptocurrency mining whereas additionally lowering dependence on international provide chains. This new invoice additionally codifies a Strategic Bitcoin Reserve, very a lot in step with earlier govt actions signed in 2025.

Last Abstract

• In simply 3 months, Taiwan, which as soon as rejected Bitcoin Reserve, is now shifting its stance.
• With over 80% of international reserves held in USD property and the rising considerations of USD debasements, Taiwan bends all the way down to Bitcoin.