The Bitcoin Reserve race is not just limited to US competitors and crypto critics are now showing interest in the idea of Bitcoin Reserve.
In a recent update, Taiwan, officially the Republic of China, plans to reconsider the idea of a Bitcoin Reserve. For those who don’t know, this isn’t the first time the country has thought about this.
In fact, the first time the idea was proposed, it was ruled out in December 2025.
Now coming up with a new perspective, a research paper written by Jacob Langenkamp, an official at the US Department of Defense, says:
Taiwan would join the 29 countries that have gained exposure to bitcoin as of January 2026, a trend accelerated by the executive order of the US Strategic Bitcoin Reserve.
Why Had Taiwan Rejected the Bitcoin Reserve in 2025?
That said, if we look back to 2025, Taiwan has taken a step back due to Bitcoin’s high volatility and low liquidity compared to traditional assets such as US dollars or gold.
Additionally, operational and security risks, including potential storage vulnerabilities, and anti-money laundering (AML) compliance, were other reasons to say ‘NO’ at the time.
However, with a huge trade surplus of $157 billion, these concerns now seem invalid. With more than 80% of foreign reserves held in USD, the perspective required some change.
Now, with growing US debt, the expansion of the Fed’s monetary base, and concerns about the AI bubble bursting, Taiwan is leaning toward Bitcoin. [BTC].
Langenkamp believes Bitcoin can act as a hedge against geopolitical tensions and support Taiwan’s economy in times of war.
Langenkamp expressed his fears about the ongoing unrest, adding:
Specific to Taiwan, the US debt and deficit situation is nuanced. Although Taiwan is not yet fully dollarized, it is estimated that 85-90% of its exports are priced in USD, and more than 80% of CBC reserves are in US government bonds. The country is heavily exposed to a potential depreciation of the USD.
Taiwan versus US and Chinese Bitcoin ownership
This is because Taiwan’s Bitcoin supply stands at 210 BTC worth $14 million, just 0.001% of the total Bitcoin supply according to BitcoinTreasuries.Net. Meanwhile, the US owns 328,372 BTC worth $21,822 million.
While China owns 190,000 BTC worth $12,619 million.
Bitcoin was trading at $66,420.97 at the time of writing, having fallen 3.12% in the past 24 hours. However, with a Bitcoin dominance of 58.58%, BTC appears to be focusing on longer-term positioning rather than short-term volatility.
Other developments in the US
Amid all these developments, two American lawyers have proposed the ‘Mined in America Act’, introduced by Bill Cassidy and Cynthia Lummis.
The bill aims to expand the scope of US-based cryptocurrency mining while reducing dependence on foreign supply chains. This new bill also codifies a strategic Bitcoin reserve, largely in line with previous executive actions signed in 2025.
Final summary
- In just three months, Taiwan, which once rejected Bitcoin Reserve, is now changing its position.
- With more than 80% of foreign reserves held in USD assets and growing concerns about the depreciation of the USD, Taiwan is turning to Bitcoin.