The global financial landscape is undergoing a seismic shift, and at the heart of this transformation lies Bitcoin. With increasing discussions around national adoption, strategic reserves, and regulatory frameworks, the second Innovation and Derivative Products Regulatory Strategy Forum has marked a pivotal moment in Taiwan’s engagement with digital assets. This landmark event brought together leading economists, financial experts, and blockchain innovators to explore the feasibility of integrating Bitcoin into national foreign exchange reserves and shaping forward-looking regulatory policies for the digital economy.
A Historic Gathering of Minds
For the first time in Taiwan, three prominent economists—Professor Hsu Chia-tung, Chairman Wu Chung-shu, and Distinguished Professor Lin Chien-fu—joined forces with monetary expert Dr. Lucy Liu, financial leader Dr. Chen Chong, and virtual asset specialists to dissect the implications of Bitcoin as a sovereign reserve asset.
The forum was hosted by the Bitcoin and Virtual Asset Development Association, co-organized by the New Generation Finance Foundation, and executed in collaboration with Bitopro Group, MaiCoin Group, Chung Hua University’s School of Finance, and Augo Blockchain Consulting.
This gathering set a new precedent: a comprehensive, high-level dialogue on how digital assets could redefine monetary policy, fiscal strategy, and national competitiveness in an increasingly decentralized world.
Regulatory Vision: Taiwan’s Four-Stage Crypto Framework
The forum opened with a keynote address from Chang Chen-shan, Director of the Securities and Futures Bureau at the Financial Supervisory Commission (FSC). He outlined Taiwan’s structured four-stage regulatory approach toward virtual assets:
- Licensing virtual asset service providers
- Strengthening anti-money laundering (AML) compliance
- Investor protection mechanisms
- International regulatory alignment
This framework reflects Taiwan’s cautious yet progressive stance—balancing innovation with financial stability.
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Can Bitcoin Be a National Reserve Asset?
Dr. Lucy Liu, former Minister of Finance, led a rigorous analysis of whether Bitcoin meets the traditional criteria for reserve assets—stability, liquidity, and widespread acceptance.
She acknowledged that while Bitcoin does not generate yield and exhibits high volatility, its fixed supply cap of 21 million coins offers a unique hedge against inflation and currency devaluation. In times of declining trust in central institutions, she noted, Bitcoin has emerged as a "digital gold"—a store of value independent of government control.
Moreover, she highlighted that stablecoins like USDT and USDC, often backed by U.S. Treasuries, are being leveraged strategically to reinforce the dollar’s global dominance—a move mirrored in discussions about a potential U.S. Bitcoin strategic reserve under a renewed Trump administration.
Expert Roundtable: Bitcoin & Foreign Exchange Reserves
In the first panel discussion moderated by Dr. Liu, experts debated whether Bitcoin could serve as a form of foreign exchange reserve.
- Chairman Wu Chung-shu emphasized that due to its extreme price fluctuations, Bitcoin is currently unsuitable as a transactional currency.
- Senior Advisor Li Jian-si pointed out that Bitcoin’s network is remarkably secure and its total supply immutable—qualities absent in fiat systems.
- Attorney Lin Hong-yu,理事长 of the Bitcoin Association, argued that when Bitcoin reaches $90,000 per coin, its total market capitalization would rival that of the New Taiwan Dollar (NTD) in circulation—making it a credible macroeconomic asset.
While consensus on immediate adoption remains elusive, the conversation signaled growing openness to treating Bitcoin as a long-term strategic holding.
Intrinsic Value & Institutional Adoption
A second panel focused on Bitcoin’s intrinsic value, featuring academics and fintech leaders from中信金融管理學院 (CTBC School of Finance), MaiCoin, and Bitopro.
- CTBC’s Chief Technology Officer Liu Yi-cheng classified Bitcoin as a commodity rather than a currency due to its lack of yield generation. However, he acknowledged that major U.S. financial institutions now recommend allocating a portion of portfolios to Bitcoin for enhanced returns.
- MaiCoin CEO Eric Liu proposed an innovative model: Taiwan could issue its own stablecoin backed by NTD or even use NTD to purchase U.S. Treasuries—effectively positioning itself within the global stablecoin ecosystem.
- Bitopro CEO Cheng Kuang-tai stressed that regulatory clarity remains the biggest hurdle for exchanges operating in Taiwan.
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Global Trends & Policy Insights
Dr.葛如鈞 (Ge Ru-jun), a tech-savvy legislator who attended Trump’s inauguration, shared firsthand insights into America’s evolving crypto policy. He emphasized that Bitcoin is redefining value standards and called on Taiwan to study the U.S. Strategic Bitcoin Reserve proposal seriously.
He warned that without proactive policy development, Taiwan risks falling behind in the digital economy race—where transparency, decentralization, and programmable money are becoming foundational.
Stablecoins: The Gateway to Web3 Finance
The third panel tackled the rise of stablecoins, widely seen as the bridge between traditional finance and blockchain-based economies.
Experts agreed:
- Stablecoins link fiat currencies to decentralized networks.
- Despite their size—Tether (USDT) dominates with over $100 billion in circulation—U.S. regulation remains ambiguous.
- Circle’s USDC takes a compliance-first approach, contrasting with Tether’s de facto acceptance despite limited oversight.
Professor Lin Meng-hsiang from Ming Chuan University delivered a stark warning: if Taiwan fails to launch a competitive central bank digital currency (CBDC) or private-sector stablecoin, it may lose influence in on-chain financial markets. With real-world assets (RWA) valued at $900 trillion underpinned by $90 trillion in global M2 money supply, digitizing value is no longer optional—it’s imperative.
International Outlook & Future Scenarios
The final panel examined global trends with insights from venture capitalists, economists, and compliance officers.
- Professor Lin Chien-fu expressed preference for stablecoins over CBDCs, citing privacy concerns with government-controlled digital currencies.
- Entrepreneur Hu Yi-tian likened nations to corporations needing efficient balance sheets—and suggested Bitcoin could serve as strategic equity to offset national debt.
- Binance Compliance Manager Jian Shu-yong noted that crypto provides upward mobility for younger generations and praised Hong Kong’s ASPIRe framework for enhancing market liquidity and positioning the city as a global crypto hub.
Frequently Asked Questions (FAQ)
Q: Can Bitcoin realistically be part of a country's foreign reserves?
A: While still controversial, several nations—including El Salvador and proposed U.S. strategies—are exploring this possibility. Its scarcity and decentralization make it attractive as a long-term store of value.
Q: What’s the difference between Bitcoin and stablecoins?
A: Bitcoin is decentralized and volatile; stablecoins are pegged to fiat currencies (like USD or NTD) and aim for price stability through reserves or algorithms.
Q: Why are stablecoins important for Taiwan’s future?
A: They enable participation in global Web3 finance. Without them—or a CBDC—Taiwan risks marginalization in digital trade and cross-border settlements.
Q: Is there regulatory progress in Taiwan?
A: Yes. The FSC has laid out a four-stage plan focusing on licensing, AML controls, investor safeguards, and international alignment.
Q: Could Taiwan issue its own stablecoin?
A: Theoretically yes—using NTD as collateral or purchasing U.S. Treasuries to back it. This would require legal reforms but could boost financial innovation.
Q: What role does Bitcoin play in geopolitical strategy?
A: It's increasingly viewed as a tool to diversify reserves away from the dollar system and reduce exposure to inflationary monetary policies.
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Keywords
Bitcoin, national reserve, stablecoin, digital asset regulation, CBDC, cryptocurrency policy, Web3 finance, financial innovation
This forum didn’t just analyze trends—it ignited a necessary national conversation. As the world moves toward a multi-reserve asset future, Taiwan stands at a crossroads: adapt proactively or risk irrelevance. The path forward demands bold thinking, sound regulation, and strategic vision—one block at a time.