Taiwan Urged to Reconsider Bitcoin Reserve in War Scenario

A think tank report suggests Bitcoin could provide financial resilience during potential regional conflict.

Apr. 2, 2026 at 7:49am

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A new policy report urges Taiwan to reassess its financial safeguards against escalating geopolitical and global economic risks, highlighting Bitcoin as a resilient reserve asset during potential regional conflict and future crisis scenarios. The report states Bitcoin could remain accessible during a military blockade or invasion scenario involving China, and suggests it could complement gold as a hedge against currency debasement and economic uncertainty.

Why it matters

Taiwan's central bank previously rejected a Bitcoin reserve due to concerns about volatility, liquidity, and custody, but the new report argues that institutional custody solutions could address these issues. The proposal comes as Taiwan holds more than 80% of its reserves in US dollar-denominated assets, which the report warns could face pressure from rising US debt.

The details

The report, presented by Jacob Langenkamp from the Bitcoin Policy Institute, suggests that Bitcoin could ensure continuous financial access if China imposes a regional military blockade, as digital assets remain accessible without physical transport across borders. The report also highlights Taiwan's heavy reliance on US dollar reserves, warning that rising US debt could pressure long-term currency stability.

  • The report was presented during a Tuesday briefing in Washington.

The players

Jacob Langenkamp

A representative from the Bitcoin Policy Institute who presented the proposal.

Taiwan's central bank

Previously rejected a Bitcoin reserve due to concerns about volatility, liquidity, and custody.

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What they’re saying

“Bitcoin offers geopolitical resilience for Taiwan during extreme emergencies. He explained that digital assets remain accessible without physical transport across borders.”

— Jacob Langenkamp, Representative, Bitcoin Policy Institute

What’s next

The central bank confirmed further research will guide future decisions regarding cryptocurrency reserves, and reiterated that volatility, liquidity, and custody risks remain key evaluation factors.

The takeaway

This report highlights the ongoing debate around Taiwan's financial resilience and the potential role of Bitcoin as a reserve asset, particularly in the context of geopolitical tensions and economic uncertainty. While the central bank has previously rejected a Bitcoin reserve, the new proposal suggests that institutional custody solutions could address their concerns, and that Bitcoin could complement traditional assets like gold in strengthening Taiwan's financial preparedness.