The post Taiwan Warned of Currency Crisis – Lawmakers Urge Bitcoin as Nation’s Digital Gold! appeared first on Coinpedia Fintech News
As Taiwan deals with growing global inflation and geopolitical risks, lawmakers are now raising a bold question: Is it time to treat Bitcoin as part of the nation’s financial defense plan?
While the idea is gaining support from experts and former officials. Could Bitcoin help protect Taiwan’s economy in uncertain times?
Let’s find it out!
Taiwan Warned of Currency Crisis
Taiwan’s economy, which is heavily built on exports, is highly exposed to foreign markets. This has made the value of the New Taiwan Dollar change a lot lately. As an export-driven country, Taiwan is highly affected by global inflation and rising tensions between major countries.
Right now, Taiwan holds 423 metric tons of gold and around US$577 billion in foreign exchange reserves. But there’s a catch, over 90% of those reserves are invested in U.S. Treasury bonds.
Experts worry that if a major conflict or financial shock happens, these traditional assets might lose value or become hard to use quickly. These changes have raised questions about how secure the country’s financial reserves are.
New Proposal: Add Bitcoin to National Reserves
To address this issue, in a recent parliamentary session, Taiwan legislator Ko Ju-Chun has suggested that the government should consider adding Bitcoin to Taiwan’s national asset reserves.
He believes Bitcoin can act as a hedge against inflation and global risks. Because Bitcoin has a fixed supply of 21 million coins, is decentralized, and is harder to control or block, Ko says it can offer Taiwan more protection in uncertain times.
He’s not asking to replace gold or U.S. dollars, but simply to add a small portion of Bitcoin to the reserves, to give Taiwan more flexibility in the future.
Growing Support For Bitcoin’s Initiative
Ko’s idea has received support from key figures like Former Premier Chen Cong recently said that Bitcoin may not be used like everyday money, but it is still a powerful asset to guard against inflation.
At the same time, Professor Liu Yiru from National Taiwan University pointed out that Bitcoin’s limited supply makes it different from traditional currencies, which can be printed in large amounts during crises.
Other Countries Are Taking Action Too
Taiwan isn’t alone in this thinking. In the United States, the state of New Hampshire just passed the Bitcoin Reserve Act, officially allowing Bitcoin to be part of its state financial reserves. Other regions are also exploring similar steps as they try to prepare for future risks.
