Taiwan Expert: “Virtual Currency May Play a Role in Times of War” General Legislator Chen Yongkang Holds TTX Regional Security Drill with Troops
Amidst escalating global tensions, Taiwan recently conducted an important regional security exercise titled “2024 TTX Regional Security”. The exercise was organized by Kuomintang legislator Chen Yongkang, Taiwan Security Research Center Director Liu Fuguo, and other units, and successfully attracted the participation of 170 scholars from both domestic and international backgrounds. This event not only examined Taiwan’s preparedness in the face of potential crises but also put forward multiple recommendations to enhance national security, including the role of “virtual currency” in times of war.
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Examination and Countermeasures for Energy Shortages
Addressing Energy Challenges: Diversification and Enhanced Reserves
Financial Strategies and the Future of Virtual Currency
Response to Financial Crises and the Role of Virtual Currency
Recommendations for Strengthening Communication Networks
Enhancing Communication Reliability
Taiwan’s Approach to Cryptocurrency Stays at the Stage of Anti-Money Laundering Measures
Research Fellow Liang Qiyuan from the Chung-Hua Institution for Economic Research pointed out the key issues in Taiwan’s energy supply. Due to the intermittent supply of renewable energy and insufficient natural gas supply, it is predicted that Taiwan will face a severe shortage of reserve capacity by 2028. Liang Qiyuan suggested enhancing the reserves of nuclear power and natural gas and ensuring sufficient power supply during times of crisis.
Director Du Zichen from the Industrial Economics and Trends Research Center at the former Industrial Technology Research Institute discussed in depth how Taiwan can effectively utilize its foreign exchange reserves in the event of a crisis in the Taiwan Strait. He proposed the crucial role that virtual currency could play during wartime and recommended that Taiwan increase its currency resources, such as by issuing war international bonds, to prepare for potential crises.
Du Zichen stated that China is promoting the digital renminbi and the United States is also discussing whether to introduce a digital dollar, which may occupy a certain position in the world in the future. Therefore, it is necessary for Taiwan to conduct simulated observations on the role that virtual currency may play during war.
The exercise also raised the issue of the vulnerability of communication networks. A telecommunications industry representative pointed out that Taiwan’s main communication networks are too centralized and susceptible to attacks during times of crisis. He suggested that the government should consider using existing cable television networks as alternative communication means to increase diversity and stability in communication.
The “2024 TTX Regional Security” provided Taiwan with an opportunity for in-depth examination and reflection on potential security threats. From energy security to financial strategies, from communication networks to international cooperation, participating scholars and experts put forward a series of forward-looking recommendations.
Associate Professor Yang Yueping recently stated that foreign regulators have already discussed the management of virtual assets, while Taiwan is still focused on anti-money laundering measures and custody, unable to keep up with the trends. For example, the European MiCA framework has already made complete plans for asset management and advisory services.
Currently, discussions on the application of virtual currency in national defense issues have also started among the private sector in Taiwan, indicating that Taiwan still has a long way to go in terms of regulating and strategizing virtual currency.
TTX
Regional Security Exercise
Du Zichen
Liang Qiyuan
Chen Yongkang
