Bitcoin National Reserve – 2025 2nd Innovation and Derivatives Product Supervision Strategy Forum
Since the Trump administration came to power, the possibility of Bitcoin as a national reserve asset has sparked global discussions. In response to this international trend, the Bitcoin and Virtual Currency Development Association held the “Bitcoin National Reserve – 2025 2nd Innovation and Derivatives Product Supervision Strategy Forum” today (13th), inviting former Premier Chen Chun, former Minister of Finance Liu Yiru, Dr. Ko Ru-Jun, a legislator, as well as representatives from various government agencies and industry experts to discuss relevant issues.
The Director-General of the Securities and Futures Bureau of the Financial Supervisory Commission (FSC), Zhang Zhenshan, began the forum by stating that the cryptocurrency industry is rapidly developing globally, bringing many opportunities. However, along with innovation, there are also significant risks in the market, especially in relation to fraud involving cryptocurrencies. Zhang Zhenshan believes that properly addressing these issues is crucial for the long-term development of the industry.
Currently, Taiwan’s FSC regulates the cryptocurrency industry through a “four-stage” approach. The FSC has already introduced the “Anti-Money Laundering and Counter-Terrorism Financing Measures for Virtual Asset Platforms and Trading Businesses,” and is about to establish a dedicated law, preparing to enter the fourth stage of regulation.
Zhang Zhenshan emphasized that he is optimistic about the future development of Taiwan’s virtual asset industry. He also hopes to collaborate with industry players and blockchain technology experts to promote the stable development of the industry.
Are Fiat Currency and Stablecoins Inherently Incompatible?
Professor Liu Yiru, from the Department of Finance at National Taiwan University, shared her views on the development of cryptocurrencies at the forum and recalled her early experiences with Bitcoin. She compared the traditional financial world and cryptocurrencies to two parallel worlds, citing the Korean drama “W- Two Worlds.” Liu Yiru believes that while these two worlds were once entirely disconnected, they will gradually merge over time.
Liu Yiru reminisced about holding her first cryptocurrency forum in 2017 when many people found the concept unfamiliar and difficult to understand. However, she firmly believes that cryptocurrencies have great potential, inspired by economist Hayek’s ideas on the denationalization of money.
In Hayek’s book, “The Denationalization of Money,” he argues that money should not be issued and controlled by governments or central banks, but should allow private entities (such as banks) to issue competitive currencies. Bitcoin, with its decentralized characteristics, rose in the wake of the global financial crisis and government policies. From being completely unrecognized at its inception, Bitcoin now has the official approval of the United States to launch a cryptocurrency spot ETF, enabling retail investors to enter the crypto market. Liu Yiru believes that the development of cryptocurrencies is an irreversible trend, and it is gradually being accepted by mainstream financial systems, having a profound impact on the global financial landscape.
Furthermore, Liu Yiru believes that the rise of stablecoins, especially those pegged to the U.S. dollar, is actually a way for the United States to expand the influence of the dollar.
Liu Yiru pointed out that Bitcoin’s volatility makes many people believe that cryptocurrencies are not suitable for inclusion in national strategic reserves. However, the situation is slightly different for the United States. Currently, there are 203 stablecoins in the U.S. market, with 93% of them pegged to the U.S. dollar, which makes the price fluctuations of Bitcoin have a relatively small impact on the overall financial system.
In fact, as the demand for Bitcoin increases, the demand for stablecoins will also rise, further driving the demand for U.S. dollar cash and U.S. government bonds, strengthening the global position of the dollar. Therefore, including Bitcoin in the U.S. strategic reserve may be an indirect strategy to promote the development of stablecoins and reinforce the influence of the dollar, and this could be one of Trump’s possible calculations.
Is Bitcoin a Currency or an Asset? Should Bitcoin be Included in Foreign Exchange Reserves?
Bitcoin Should Not Be Considered for Foreign Exchange Reserves
Regarding whether Bitcoin is suitable for inclusion in foreign exchange reserves, former Vice Governor of the Central Bank, Xu Jiadong, directly stated, “Bitcoin is not money, and central banks will never consider this in the future (as part of foreign exchange reserves).”
Xu Jiadong pointed out that foreign exchange reserves are crucial for national economic stability. However, in the context of globalization and changing financial environments, effectively managing foreign exchange reserves has become a significant challenge.
Foreign exchange reserves management is influenced not only by external market risks but also by internal policies and political environments, which can also bring challenges. In the face of international financial storms, a strong foreign exchange reserve can effectively help stabilize the national economy.
The functions of foreign exchange reserves include adjusting foreign exchange demand, stabilizing exchange rates, meeting contingencies, earning interest, and serving various economic and non-economic functions, such as establishing sovereign wealth funds or promoting international relations.
Xu Jiadong emphasized that traditional methods of managing foreign exchange reserves no longer fit today’s international markets. Innovative strategies, such as sovereign wealth funds, should be explored to improve asset operation efficiency. However, despite the rise of digital currencies and other emerging tools, their high volatility makes them unsuitable as alternatives to foreign exchange reserves.
Bitcoin Should Be Considered for Foreign Exchange Reserves
Li Quanxi, Senior Consultant at the Republic of China Foreign Trade Development Association, offered a different perspective. Li Quanxi pointed out that the trade structure challenges the United States faces not only concern international trade flows but also the future of the U.S. dollar as the global reserve currency.
Although Trump was often regarded as a “madman” in politics, his cabinet team had a clear plan for the United States’ economic strategy. Li Quanxi emphasized that Trump’s economic policy goes beyond trade tariffs and monetary policy, with a deeper logic aimed at reshaping the international trade structure and repositioning the United States in the global economy.
Li Quanxi stressed that if the United States wishes to maintain its global economic leadership in the future, it must reset the international economic and trade structure. While the relationship between the U.S. dollar and U.S. Treasury bonds remains critical, with the U.S. no longer being the world’s largest manufacturing country, reliance on the dollar as the basis for global trade will face increasing pressure.
Li Quanxi pointed out that this issue is not just about monetary policy, but also about how the U.S. can revitalize its manufacturing industry, improve domestic income inequality, and address the rising trade deficit and international competition pressures.
With the rise of digital currencies (such as central bank digital currencies – CBDCs) and stablecoins, the traditional reserve currency structure is facing unprecedented challenges. Furthermore, China’s digital currency strategy, as well as the role of Bitcoin and gold in international reserves, could disrupt the global trade structure.
Li Quanxi emphasized that the competition over monetary forms and financial sovereignty is not only a showdown between the U.S. and China but also a critical moment in the restructuring of the global financial order.
The Chairman of the Bitcoin and Virtual Currency Development Association, Lin Hongyu, also believes that the United States’ inclusion of Bitcoin in its strategic reserves represents global recognition of cryptocurrency by the world’s largest economy.
Lin Hongyu suggested that Taiwan should actively consider strategies such as formulating dedicated laws, including Bitcoin in foreign exchange reserves, or investing through sovereign funds, rather than just debating its asset classification.