Ko Ju- chun discusses the central bank’s U.S. dollar stablecoin foreign-exchange reserves, and the central bank governor Yang Jin-long signals: “Time and space will change.”

Should Taiwan include stablecoins in its national strategic reserves? Recently, this topic has sparked discussion in the Legislative Yuan. Legislator Ko Ju-chun suggested that the central bank could evaluate incorporating a small portion of its foreign exchange reserves into “USD stablecoins.” In response, Central Bank Governor Yang Chin-lung stated that the stance on including Bitcoin or stablecoins in foreign exchange reserves “has not changed,” but also acknowledged that “time and circumstances will change,” and that future adjustments will be made based on the overall financial environment and policy needs.

Ko Ju-chun raised the issue of stablecoin reserves during his questioning, and Yang Chin-lung responded: “Time and circumstances will change.”

During the questioning, legislator Ko Ju-chun pointed out that, aside from Bitcoin, the central bank could consider allocating a small part of its foreign exchange reserves to “USD stablecoins” as a risk diversification and financial contingency tool. He emphasized that stablecoins possess features such as rapid cross-border transferability and real-time digital operation; in extreme situations, they could compensate for the liquidity and accessibility limitations of traditional U.S. dollars and gold.

Ko Ju-chun further noted that Taiwan is in a unique geopolitical environment. If faced with maritime blockades or disruptions to the financial system, traditional assets like U.S. dollar deposits might encounter transfer difficulties, whereas stablecoins, as on-chain assets, offer higher portability and immediate settlement capabilities.

He argued that the central bank could adopt a “small-scale, pilot” approach rather than making large adjustments to the current foreign exchange reserve structure. Additionally, he cited international cases, including the United States, El Salvador, and Bhutan, which have already held or planned to hold crypto assets in various forms, indicating that this issue has entered the realm of national strategic discussion.

In response, Central Bank Governor Yang Chin-lung reiterated that the stance on including Bitcoin or stablecoins in foreign exchange reserves “has not changed,” but also acknowledged that “time and circumstances will change,” and future adjustments will be made according to the overall financial environment and policy needs.

Why Taiwan should issue its own USD stablecoin

Compared to the cautious policy stance, Winnie Hong-jun, vice chairman of the Taiwan Financial Technology Association, views this issue from a more open perspective. He pointed out that the discussion about stablecoin strategic reserves fundamentally touches on Taiwan’s choice between geopolitical considerations and financial sovereignty.

Hong-jun explained that if Taiwan opts to allocate USD stablecoins, it effectively further ties its financial system to the United States. This is not only an asset allocation issue but also an extension of geopolitical stance. He recalled proposing a “U.S. dollar +1” strategy previously, suggesting Taiwan should consider building more diversified financial options beyond the existing U.S. dollar system to enhance overall resilience.

He emphasized that Taiwan, as an export-oriented economy centered on semiconductors, is inherently highly dollarized. In extreme scenarios—such as financial system failure or restrictions on capital flows—stablecoins could serve as a “wartime portable asset,” providing a means for asset transfer and preservation. However, he also warned that mainstream stablecoins like USDT and USDC are still controlled by their issuing entities, posing risks of freezing or sanctions.

Therefore, Hong-jun advocates that Taiwan should consider issuing a “self-controlled, autonomous USD stablecoin,” especially to meet the international settlement needs of the semiconductor and AI industries, thereby securing settlement rights for key industries—this would be a true extension of financial sovereignty. He also admitted that USD stablecoins are still tied to the U.S., and the truly independent, neutral option remains Bitcoin reserves.

Regarding asset allocation logic, Hong-jun proposed a dual-track framework: “acknowledgement assets” and “survivability assets.” The former includes U.S. Treasuries, foreign exchange, and stablecoins, based on the premise of a stable international order; the latter includes Bitcoin, gold, and critical resources, to address extreme risks and systemic failures. He believes that a resilient national reserve strategy should not choose between these two but should allocate both simultaneously, creating a “parallel financial system for peacetime and wartime.”

This article, “Ko Ju-chun discusses USD stablecoin foreign-exchange reserves; Central Bank Governor Yang Chin-lung responds: ‘Time and circumstances will change,’” first appeared on LianNews ABMedia.