A research fellow with the Bitcoin Policy Institute believes that Taiwan should reconsider using Bitcoin as a form of reserve currency to mitigate against world turmoil and war risks.
Jacob Langenkamp reported on Tuesday. said Bitcoin would be threatened if China attempted to unify Taiwan militarily, whether through blockade, or invasion.BTCThe only asset in the reserve that could be spent and accessed would be the.
“Uniquely for Taiwan, Bitcoin provides geopolitical resilience: in a PRC blockade or invasion, gold is stranded or seized and USD reserves face potential restrictions, but Bitcoin remains fully accessible without physical transport,” He added.
As a signal of optimism for Bitcoin, nation-states are exploring the possibility of creating strategic Bitcoin reserve funds.
Taiwan Central Bank sought to investigate establishing a national Bitcoin reserve. In December the bank rejected the idea, citing liquidity and volatility concerns, and recommended the US Dollar as an alternative.
Langenkamp
Langenkamp stated that Taiwan’s central bank reserves and most of the country’s trade are denominated in USD.
Federal Reserve’s monetary expansion is a result of the growing US debt. potential AI market downturn He said that declining revenues from semiconductors could accelerate the debasement of dollars.
“Bitcoin can couple with gold to offer that hedge against USD debasement. It can provide another opportunity for the CBC to adopt a reserve asset before its peers and benefit the people of Taiwan with the subsequent price appreciation,” Langenkamp is added.
“It can offer geopolitical insurance against scenarios that hopefully do not come to pass. It can open new methods of trade with less friction. Bitcoin can provide Taiwan with a great measure of monetary resilience.”
Related: US Bitcoin reserve still has no plan to stack sats
Langenkamp continued to argue that Bitcoin’s volatility and liquidity are both valid concerns, but that they will be resolved. diminish as the asset matures The adoption of the metric system is increasing among countries.
“The CBC’s concerns are valid but addressable with institutional expertise on custody, liquidity, and volatility,” He added.
Taiwan currently has at least 220 Bitcoin
Despite ruling a Bitcoin reserves for now, CBC is committed to test the technology further using the cryptocurrency the country holds in a sandbox of digital assets.
Taiwanese politician Ko Ju Chun revealed On X, it was reported last year, that the Ministry of Justice of this country holds 210 Bitcoin worth 14 million dollars, which were confiscated in criminal investigations.
BitBo doesn’t list Taiwan is ranked seventh in the country reserve ranking for Bitcoin holders, after El Salvador and ahead of Finland.
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Source: cointelegraph.com
