After several years of hostility towards Bitcoin, Taiwan seems to want to reconsider his point of view given his precarious geopolitical situation.
In short
- Taiwanese deputies invite the government to walk in the footsteps of the United States by adding bitcoin to its exchange reserves.
- Bitcoin would cover yourself against the risk of collapse of the Taiwanese dollar in the event of embargo by China.
Bitcoin: the ultimate refuge value
The Sino-Taiwanese relationship is an explosive geopolitical node. Beijing claims the island as an integral part of its territory, while Taipei, supported by Washington, defends its autonomy, while considering strategic investments in Bitcoin.
As in Ukraine, the Risk of proxy war is not impossible if trade tensions degenerate between Washington and Beijing. Such a conflict would threaten the global economy since the Taiwanese industrial flagship (TSMC) produces most of the semiconductors necessary for the high-tech industry.
China could easily decree an embargo and implement a total blockade of Taiwan. The country's economy would collapse immediately, as is its currency. This would result in immediate hyperinflation.
This is why the country has almost $ 300 billion in reserve. No country has greater reserves of green tickets with regard to the size of the population (tax havens aside). These reserves are a way to buy protection from the United States.
Except that in the event of an invasion, Washington will freeze these 300 billion at the same time as the $ 750 billion that China holds in reserve. Russia knows something about it since half of its reserves, mainly euros, is frozen.
The millions of Taiwanese who will seek to flee the country will not be able to take anything with them. They will be ruined. Unless you have bitcoins. It is easier to take the plane with twelve words in mind than with suitcases of gold or dollars in the hold. Bitcoin allows you to leave your country with all your fortune.
Taiwanese deputies recently seized the subject, calling the bitcoin “ value reserve as well as refuge value ” ::
In the wake of the United States
The Taiwanese deputy Ko Ju-Chun asked the government at the end of last week to add Bitcoin to his exchange reserves.
“Bitcoin has been working for over 15 years. Its total offer is fixed, it is decentralized and resists censorship. It cannot be subject to an embargo ”he said.
The deputy relied on the recent creation of a Bitcoin Strategic Reserve by the United States government. “The state of the New Hampshire has just authorized that 5 % of public funds can be invested in Bitcoin, and 28 other states could soon follow”, he added.
In addition, the former Taiwanese Prime Minister estimates “” that failing to be a currency, bitcoin is digital gold allowing to protect itself from inflation ”.
Huang Zhifeng, president of the association of foreign trade, thinks that “The decentralized nature of bitcoin made it possible to avoid monetary risk in a geopolitically sensitive region like Taiwan”.
We do not say that Bitcoin is the solution to everything. We suggest placing a small part of our reserves in Bitcoin. As the former dean Chen Chong said, Bitcoin is the gold of the digital age.
Ko Ju-Chun, Taiwanese deputy
At the end of the end, the whole world will follow if the United States makes its reserve currency bitcoin. Especially since Donald Trump aims to absorb the trade deficit. The world will therefore have to find a new international reserve currency.
Updorid, non -censurable and existing in finished quantity, bitcoin can cut the lion's share in world reserves. In this regard, do not miss our article: USA ready to abandon the “exorbitant privilege” for Bitcoin?
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