Taiwan's Central Bank once again says No to Bitcoin reserves! Responds to legislator's "research report" and refuses to follow the experiments of the US and Czech Republic

Taiwan’s Central Bank submits a report to the Legislative Yuan, explicitly excluding Bitcoin from the $600 billion foreign exchange reserves, emphasizing volatility, liquidity, and operational risks.
(Background: Trump officially nominates Paul Atkins as the new SEC Chair, what is his stance on cryptocurrencies?)
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Recently, Taiwan’s Central Bank responded to a report submitted to legislator Ge Rujun, with nearly 10,000 words, addressing whether Bitcoin is suitable to be included in foreign exchange reserves.

The conclusion is unequivocal: high volatility, low liquidity, and operational risks prevent Bitcoin from bearing the responsibility of $600 billion in reserves.

In the face of the US listing confiscated Bitcoin as strategic assets and Prague attempting a million-dollar reserve sandbox, Taiwan’s Central Bank chooses to stay on the sidelines, maintaining a cautious stance toward the crypto reserve boom.

Global crypto polarization, Taiwan stands firm as a “conservative”

The report first mentions the US and Czech Republic, with the Trump administration establishing a “strategic Bitcoin reserve,” and the Czech Central Bank publicly testing an investment portfolio.

However, a survey by the Official Monetary and Financial Institutions Forum (OMFIF) shows that up to 93% of central banks are unwilling to hold digital assets. Taiwan aligns with most global central banks, citing not only risk but also its position within the global US dollar system.

The report references internal Czech backtesting indicating that if 5% of funds were allocated to Bitcoin over the past ten years, while total returns doubled, portfolio volatility also doubled. The Central Bank believes that “the primary function of foreign exchange reserves is availability during crises,”

Once high-volatility assets need to be sold off during crises, the stability essential for reserve assets is compromised.

(Screenshot 2025-12-11 5:24:13 PM | Dynamic Blockchain News - The Most Influential Blockchain Media)

The report also mentions liquidity. Although Bitcoin’s market cap exceeds a trillion dollars, if Taiwan were to sell hundreds of millions of dollars at once, market depth would still be insufficient, and during trading seasons, if technical failures or platform bankruptcies occur, liquidity could vanish instantly.

Regarding operational risks, loss of private keys or hacker attacks could cause national assets to evaporate instantly. Such risks are intolerable within bureaucratic layers requiring multiple approvals. For Taiwan, which is export-oriented, as long as dollar clearing channels are smooth, there is no urgent need to decouple sanctions through decentralized assets.

Next round: Stablecoins rather than Bitcoin

Although rejecting Bitcoin, the report leaves a hint at the end: US dollar stablecoins. As the US “GENIUS Act” clarifies regulatory frameworks, the Central Bank believes blockchain can provide efficiency in cross-border payments and clearing, which is the focus of future policy discussions. In other words, Taiwan may prioritize loosening restrictions on stablecoins as a payment tool, while Bitcoin remains on the watchlist.

For Taiwan’s Central Bank, foreign exchange reserves are a shield, not a gambling chip; Bitcoin may have already gained some backing from US officials, but to open the vault door in Taipei, the key questions of volatility, liquidity, and operational integrity must first be addressed.

(Official Blockchain Website TG Banner - 11/16 | Dynamic Blockchain News - The Most Influential Blockchain Media)

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Tags: Bitcoin Reserve Crypto Regulation Sovereign Wealth Stablecoin Taiwan Central Bank