The Bitcoin Reserve race is not limited to US rivals, and crypto critics are now showing interest in the Bitcoin Reserve idea.
In a recent update, Taiwan, officially the Republic of China, is planning to reconsider the Bitcoin Reserve idea. For those unaware, this is not the first time the country has thought in this direction.
In fact, when the idea was first proposed, it was rejected in December 2025.
Now, a research paper written by Jacob Langenkamp, a civil servant with the US Department of Defense, puts it from a new perspective:
Taiwan will join 29 countries exposed to Bitcoin as of January 2026; this is a trend that has accelerated with the US Strategic Bitcoin Reserve executive order.
Why did Taiwan reject Bitcoin Reserve in 2025?
However, looking back to 2025, we see Taiwan holding back due to Bitcoin’s high volatility and low liquidity compared to traditional assets such as the US dollar or gold.
Additionally, operational and security risks, including potential vulnerabilities in storage and anti-money laundering (AML) compliance, were other reasons behind saying “NO” at the time.
However, given the huge trade surplus of $157 billion, these concerns now seem invalid. In fact, since more than 80% of foreign exchange reserves were held in US dollars, some change in perspective was necessary.
With rising US debt, the Fed expanding its monetary base and concerns about the bursting of the AI bubble, Taiwan is now Bitcoin (BTC).
Langenkamp believes that Bitcoin can serve as a hedge against geopolitical tensions and support Taiwan’s economy in times of war.
Expressing fears about the ongoing turmoil, Langenkamp added:
America’s debt and deficit situation, especially for Taiwan, is nuanced. Although Taiwan is not fully dollarized, it is estimated that 85-90% of its exports are priced in US dollars, and more than 80% of its CBC reserves are held in US Treasury bonds. The country is greatly affected by the possible depreciation of the US dollar.
Taiwan opposes US and China’s Bitcoin holdings
This comes as Taiwan’s Bitcoin storage stands at 210 BTC worth $14 million; This accounts for only 0.001% of the total Bitcoin supply. BitcoinTreasuries.Net. Meanwhile, the US holds 328,372 BTC worth $21,822 million.
China, on the other hand, has 190,000 BTC worth $12,619 million.
Bitcoin was trading at $66,420.97 at the time of writing, after falling 3.12% in the last 24 hours. However, with Bitcoin dominance at 58.58%, BTC appears to be focused on long-term positioning rather than short-term volatility.
Additional developments in the US
In the middle of all these developments, two US lawyers Proposed “Mining in America Act” Introduced by Bill Cassidy and Cynthia Lummis.
The bill is intended to expand the scope of U.S.-based cryptocurrency mining while also reducing dependence on foreign supply chains. This new bill also codifies the Strategic Bitcoin Reserve, very much in line with previous executive actions signed in 2025.
Final Summary
- Taiwan, which once rejected the Bitcoin Reserve, is now changing its stance in just 3 months.
- With more than 80% of foreign reserves held in USD assets and concerns about USD depreciation growing, Taiwan is turning to Bitcoin.
