The second Innovation and Derivative Products Regulatory Strategy Forum has concluded successfully, marking 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 transformative potential of Bitcoin, digital currency, and stablecoins in reshaping national monetary policy and global financial systems.
With growing international momentum—especially following reports of U.S. strategic interest in Bitcoin—the discussion centered on whether Bitcoin could serve as part of a nation’s foreign exchange reserves, how stablecoins might redefine cross-border finance, and what regulatory frameworks Taiwan should adopt to remain competitive.
👉 Discover how countries are redefining national reserves with digital assets.
A Historic Gathering of Minds
Hosted by the Bitcoin and Virtual Asset Development Association and co-organized by the New Generation Finance Foundation, the forum featured unprecedented collaboration with BitoPro Group, MaiCoin Group, Chung Hua University’s Financial Management College, and OG Blockchain Advisors. 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 Professor Liu Yi-ju and financial leader Dr. Chen Chong to analyze the feasibility of Bitcoin as a national reserve asset.
The dialogue set a new benchmark for high-level discourse on cryptocurrency regulation, digital asset integration, and financial innovation in the region.
Keynote Insights: Bitcoin, Trust, and Monetary Evolution
Dr. Chen Chong, former Premier of Taiwan, opened the keynote session by emphasizing that digital assets are no longer speculative tools but strategic instruments in a rapidly shifting geopolitical landscape. He likened digital assets to "a gun"—a powerful tool that nations must understand and wield wisely.
He highlighted former U.S. President Donald Trump’s public support for incorporating Bitcoin into America’s strategic reserves as a wake-up call for central banks worldwide. This move signals not just technological adoption but a fundamental rethinking of national wealth storage and monetary sovereignty.
Can Bitcoin Be a National Reserve Asset?
Professor Liu Yi-ju, former Minister of Finance, led a rigorous examination of Bitcoin through the lens of traditional monetary theory. She outlined that national reserves typically consist of foreign currencies, gold, and IMF special drawing rights (SDRs)—assets valued for liquidity, stability, and universal acceptance.
Bitcoin challenges these norms. While it lacks intrinsic yield and exhibits high volatility, its fixed supply cap of 21 million coins offers protection against inflation—a feature increasingly relevant amid global fiscal expansion.
“In times when public trust in governments wavers, Bitcoin emerges as a decentralized alternative—a digital form of ‘hard money’,” said Professor Liu.
She also noted that stablecoins like USDT and USDC, often backed by U.S. Treasuries, may be playing a quiet yet critical role in reinforcing the dollar’s global dominance—an indirect endorsement of blockchain-based finance by major economies.
Panel Debate: Feasibility and Challenges
Panel 1: Redefining Foreign Exchange Reserves
Chaired by Professor Liu Yi-ju, this session explored whether Bitcoin could function as a form of foreign exchange reserve.
- Chairman Wu Chung-shu of the Taiwan Institute of Economic Research stressed that Bitcoin’s price volatility makes it unsuitable as a transactional currency today.
- However, he acknowledged its growing role as a store of value—akin to digital gold.
- Senior Advisor Li Chien-szu pointed out Bitcoin’s unparalleled network security and unchangeable issuance schedule—features absent in fiat systems.
- Attorney Lin Hung-yu,理事长 of the Bitcoin Association, added that at a price of $90,000 per BTC, Bitcoin’s total market capitalization would rival that of the New Taiwan Dollar (TWD), making it statistically significant enough to consider for reserve portfolios.
👉 Explore how digital assets are reshaping national economies.
Panel 2: Intrinsic Value and Institutional Adoption
Experts including Dr. Hsu Pei-ling from Chung Hua University and tech leaders from MaiCoin and BitoPro discussed Bitcoin’s valuation framework.
- CTO Liu Yi-cheng of CTBC Financial Holding stated that since Bitcoin does not generate cash flow, it should be classified as a commodity rather than a currency.
- Yet, he confirmed that institutional investors are increasingly allocating small percentages of their portfolios to Bitcoin to enhance long-term returns.
- Liu Shih-wei, CEO of MaiCoin, proposed an innovative idea: Taiwan could issue its own stablecoin backed by New Taiwan Dollars or even U.S. Treasuries purchased with TWD—creating a bridge between local monetary policy and global DeFi markets.
- CEO Cheng Kuang-tai of BitoPro highlighted ongoing regulatory uncertainty as the biggest barrier for exchanges operating in Taiwan.
Global Trends and Policy Implications
Dr.葛如鈞 (Ge Ru-jun), a technology legislator who attended Trump’s inauguration, shared firsthand observations about America’s evolving crypto stance. He emphasized that:
- Bitcoin is redefining value standards beyond traditional GDP metrics.
- The current financial system suffers from opacity—blockchain offers transparency.
- The U.S. Strategic Bitcoin Reserve proposal reflects a serious governmental shift.
His recommendation? Taiwan should proactively study similar legislation to avoid falling behind in the global race for digital economic leadership.
Stablecoins: The Gateway to Web3 Finance
Panel 3: The Rise of Stablecoins
With central banks worldwide exploring central bank digital currencies (CBDCs), this panel examined whether private-sector stablecoins offer better alternatives.
- Deputy Secretary-General Wen Hong-chun explained that stablecoins pegged to fiat currencies act as bridges between traditional finance and blockchain ecosystems.
- Despite Tether (USDT) dominating the market, it operates without formal U.S. regulatory approval—yet is tolerated due to its stabilizing effect on dollar liquidity abroad.
- In contrast, Circle (issuer of USDC) actively pursues compliance, setting a model for regulated growth.
- Professor Lin Meng-hsiang warned that if Taiwan fails to launch either a competitive stablecoin or CBDC, it risks losing influence in on-chain financial markets—where over $90 trillion in real-world assets (RWA) are expected to be tokenized in the coming decade.
“Without a strong presence in digital asset infrastructure, Taiwan may become irrelevant in future financial ecosystems,” he cautioned.
Panel 4: International Outlook and Strategic Opportunities
Final discussions focused on global trends:
- Venture capitalist Wu Teh-wei sees nation-states adopting corporate-like efficiency models—Bitcoin fits as a balance sheet asset.
- CEO Hu Yi-tian suggested using Bitcoin to convert national debt into equity-like holdings—potentially alleviating fiscal pressure.
- Binance Compliance Manager Jian Shu-yung praised Hong Kong’s ASPIRe regulatory framework for virtual asset platforms, which aims to create a unified global order book and strengthen Hong Kong’s status as an international crypto hub.
Core Keywords Integrated:
- Bitcoin
- Digital currency
- Stablecoin
- Cryptocurrency regulation
- National reserves
- Blockchain finance
- Monetary policy
- Financial innovation
Frequently Asked Questions (FAQ)
Q: Can Bitcoin realistically be part of a country’s foreign reserves?
A: While still controversial due to volatility, several nations—including El Salvador—are experimenting with Bitcoin holdings. Its scarcity and decentralization make it an attractive hedge against inflation and currency devaluation.
Q: What’s the difference between stablecoins and CBDCs?
A: Stablecoins are privately issued digital tokens pegged to fiat (e.g., USD), operating on public blockchains. CBDCs are government-issued digital versions of national currency, usually running on centralized or permissioned networks.
Q: Why is regulatory clarity important for crypto exchanges?
A: Clear rules enable exchanges to operate legally, protect users, attract institutional investment, and integrate with traditional banking systems—key steps toward mainstream adoption.
Q: How can Taiwan benefit from issuing its own stablecoin?
A: A TWD-backed stablecoin could facilitate faster cross-border payments, attract DeFi liquidity, and strengthen Taiwan’s role in global digital trade—especially with exposure to U.S. Treasury-backed yield mechanisms.
Q: Is Bitcoin environmentally sustainable?
A: While early concerns focused on energy use, growing adoption of renewable energy in mining operations and technological improvements have significantly reduced its carbon footprint per transaction.
Q: What role does institutional adoption play in crypto markets?
A: Institutional involvement brings capital stability, enhances market credibility, and drives product innovation such as ETFs and custody solutions—accelerating mainstream integration.
👉 Stay ahead in the digital asset revolution—see how nations are adapting today.
As the world transitions toward a multi-polar financial system powered by blockchain technology, Taiwan stands at a crossroads. The insights from this forum underscore the urgency for forward-thinking policies on Bitcoin, stablecoins, and digital currency regulation—not just for economic resilience but for strategic relevance in the 21st-century economy.