The virtual asset industry has officially entered a critical period of global competition. Whether the virtual asset industry can become Taiwan’s next pillar industry depends on the cooperation and understanding of all sectors on the importance of this industry to Taiwan. The “Bitcoin and Virtual Currency Development Association” has compiled the experiences and opinions of industry experts, scholars, and representatives to publish the “Bitcoin and Virtual Asset Development White Paper.” The white paper provides three recommendations for Taiwan’s promotion of the virtual asset industry for reference:
1. Promote Bitcoin policies and its applications in Taiwan.
2. Promote supervision and application of virtual assets in Taiwan.
3. Promote the application and international exchange of blockchain technology in Taiwan.
In addition to being a target for virtual asset investment, Bitcoin also has its own value and importance that should be noted. Here are four major perspectives:
1. Bitcoin as a store of value:
Bitcoin, also known as “digital gold,” has a correlation coefficient of 0.6 with gold, according to the academic article “Network effects and store-of-value features in the cryptocurrency market.” This means that Bitcoin is correlated with gold. Therefore, whether it is individuals, corporations, or governments, including Bitcoin in asset allocation can provide the same hedging effect as gold and help increase overall risk resilience. Considering that the Taiwanese government holds a large amount of gold concentrated in a single location, there is a certain level of risk. It should consider how to provide additional insurance protection for Taiwan through Bitcoin.
2. Bitcoin mining contributes to renewable energy development:
Bitcoin mining has the characteristic of storing electricity, which can convert the wasted energy in the early stage of renewable energy development into assets or stored electricity, compensating for the weaknesses of renewable energy development. It is expected to complement Taiwan’s energy policy. In addition, Taiwan continues to promote offshore wind power construction, and most potential sites are located in the Taiwan Strait, which has strategic importance for Taiwan. If extensive offshore wind farms can be deployed in the Taiwan Strait, it may accelerate the development of renewable energy and enhance national defense capabilities.
3. Bitcoin’s Lightning Network contributes to inclusive finance:
Bitcoin’s Lightning Network is the most successful micro-payment tool. Compared to local payment tools in Taiwan, the Lightning Network has the advantages of globalization and low capital threshold. The average remittance cost for cross-border remittances in 2021 is 6.4%. By using the Lightning Network, people can quickly make low-cost remittances almost instantly. With the increasing number of foreign migrant workers in Taiwan in recent years, if their salaries can be transferred to their families in other countries immediately and without delay through the Lightning Network, it will be one of the application scenarios combining virtual assets and finance.
4. Bitcoin promotes technological innovation:
Bitcoin’s use of blockchain technology leads technological innovation. For example, the Hong Kong Monetary Authority has used blockchain technology to launch green bonds, and the World Bank is considering tokenizing infrastructure to improve processing efficiency and increase transparency. The Bitcoin wallet, Strike, combines the current financial system with Bitcoin, creating a new type of bank based on Bitcoin. Users can send Bitcoin and fiat currency globally in real-time and at nearly zero cost. The system also supports currency exchange between different fiat currencies.
Promoting supervision of virtual assets and international exchange:
Based on the aforementioned value of Bitcoin, the “Bitcoin and Virtual Currency Development Association” covers the current legal regulatory framework for virtual assets in Taiwan in the “Bitcoin and Virtual Asset Development White Paper,” as well as the association’s future plans for virtual asset policy development, advocacy, and regulatory research. In addition, the white paper also mentions that the association will continue to promote international exchanges and learn from the experiences and achievements of countries that are leading Taiwan in virtual asset regulation and development. This will help provide more information to regulatory authorities, promote industry growth, and facilitate faster integration with the international community, thereby promoting the overall upgrading and innovation of the industry.
Physical launch event of the “Bitcoin and Virtual Asset Development White Paper”:
Since its establishment in 2021, the “Bitcoin and Virtual Currency Development Association” has been committed to promoting the progress of regulations related to Bitcoin and virtual assets and promoting the application and development of virtual assets. With the promotion from all sectors, it is hoped that the virtual asset industry will become Taiwan’s next pillar industry.
The association will hold the “Bitcoin Development White Paper Launch Event and Keynote Discussion on Taiwan and Bitcoin” on Tuesday, March 12, 2024, at the “Taipei Ark.” Industry experts will be invited to share the impact and opportunities of cryptocurrencies on Taiwan’s future. The event includes the presentation of the key points of the “Bitcoin and Virtual Asset Development White Paper,” a thematic discussion on the importance of Bitcoin for Taiwan, and sharing of the contents of the books “Choices in the Changing World” and “Cryptocurrency Law” to analyze strategies and legal issues related to cryptocurrencies in the globalized context.
Please note that this article is provided by the official source and does not represent the position or investment advice of this website. Readers must conduct their own careful evaluation.
