what happen?
After the election of the new US President Trump, Trump's "America First" policy will lead to a gradual change in the global economic situation.
Trump strongly supported cryptocurrency during the campaign and even mentioned making the United States a global center for Bitcoin, promising to include Bitcoin in a strategic reserve if elected.
However, Taiwan’s attitude toward cryptocurrencies is relatively conservative. How the central bank and the Financial Supervisory Commission should respond to Bitcoin and the future development of the crypto market has become the focus of attention.
Central Bank’s View on Bitcoin
The Financial Supervisory Commission today (14th) reported to the Legislative Yuan Finance Committee on the possible future impact of new U.S. President Trump’s return to the New Deal on Taiwan’s economic and financial stability and response measures.
However, although Trump repeatedly mentioned his importance to Bitcoin during the campaign and will do something about cryptocurrency regulation in the future, it shows that the cryptocurrency industry will play a very important role during Trump’s next term. Role. However, the report submitted by the Financial Supervisory Commission before the meeting did not mention Taiwan’s policies on cryptocurrency.
Legislator Luo Mingcai pointed out in the Legislative Yuan inquiry that Taiwan has missed opportunities to purchase gold and Bitcoin at low prices in the past, and said that in the past he had suggested that the central bank buy large amounts of gold and Bitcoin, but the central bank did not adopt the suggestion at the time.
Bitcoin has climbed from a low price of US$6,000 to currently over US$80,000, and has even exceeded US$90,000. Many markets predict that the price of Bitcoin will reach US$150,000 to US$300,000 in the future.
In addition, although most Bitcoins held by the U.S. government come from confiscation or customs seizures, these Bitcoins are also considered assets of the U.S. government, which shows that the value of Bitcoin has been recognized to a certain extent in the United States.
In response, Yang Jinlong, president of the central bank, expressed admiration for Luo Mingcai's foresight, but he also emphasized that the investment decisions of central bank assets need to be handled with caution, so Bitcoin cannot be easily included in reserve assets at present.
If war breaks out, Taiwan's assets may be frozen?
Luo Mingcai then used the freezing of Russian assets after the outbreak of the Russo-Ukrainian war as an example to question whether Taiwan's holdings of U.S. Treasury bonds also pose similar risks.
Yang Jinlong believes that this situation will not happen, and also said that Taiwan should maintain a certain degree of flexibility to cope with future uncertainties.
As for whether the central bank will take a more positive attitude towards Bitcoin transactions, Yang Jinlong said that the Financial Supervisory Commission has begun to regulate Bitcoin, mainly focusing on risks such as money laundering, but it does not rule out allowing the normal development of Bitcoin after supervision is improved.
Yang Jinlong said that emerging assets such as gold and Bitcoin will be carefully evaluated in the future, but he also emphasized again that the central bank will not easily make risky asset allocations.
In the face of the upcoming strategic deployment of cryptocurrency by the United States, whether Taiwan should speed up the pace of supervision in order to integrate with international trends has become a topic that Taiwan's regulatory agencies need to consider.
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