Taiwan Mulls Strategic Bitcoin Reserve As Czech Central Bank Becomes First To Hold BTC
Taiwan will study the creation of a strategic Bitcoin reserve while the Czech central bank has become the first to add BTC to its balance sheet.
Taiwan’s initiative is being led by legislator Dr. Ju-chun Ko with support from JAN3 CEO Samson Mow and will explore using government-seized Bitcoin that’s “awaiting auction” to establish an initial reserve.
Taiwan’s government said it will also draft pro-Bitcoin regulations and pilot Bitcoin treasury holdings.
JAN3, a Bitcoin technology company focused on accelerating BTC adoption, announced the initiative after extensive discussions with lawmakers regarding the risks of overreliance on traditional reserves.
Bitcoin Reserve Plan Follows Volatile Period For New Taiwan Dollar
Taiwan’s existing reserves include approximately $577 billion in foreign currency, of which 92% is invested in US Treasury bonds. The country’s reserves also include 423 metric tonnes of gold.
Ko said that Bitcoin would not replace the government’s holdings in those assets, but would rather complement them and enhance the government’s portfolio by introducing some diversification.
Taiwan’s planned exploration of a strategic national reserve around the largest crypto by market cap follows a volatile period for the New Taiwan Dollar, which has at times seen its value swing as much as 5% in a single day.
However, Bitcoin itself is notoriously volatile. For instance, the crypto plummeted over 6% in the past 24 hours amid a broader market selloff.
BTC price (Source: CoinMarketCap)
Ko cited the fiat currency’s volatility when he started urging Taiwan to consider including Bitcoin in the country’s strategic reserves back in May.
He has also criticized the country for its overreliance on the US dollar, noting a lack of resilience.
Czech National Bank Becomes First To Add BTC To Its Balance Sheet
While Taiwan begins its exploration of a national Bitcoin reserve, the Czech Central Bank has become the first to add BTC to its balance sheet.
The central bank has created a $1 million test portfolio that includes Bitcoin, a USD stablecoin, and a tokenized deposit token.
The pilot was approved on Oct. 30, and is meant to give the bank experience with blockchain-based assets.
The Czech central bank said it will not increase the amount that it has invested, and said that the purchase was made outside of its international reserves.
While the Czech Republic is part of the European Union, it has not adopted the euro. This gives its central bank more independence from the European Central Bank.
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