The virtual asset industry has officially entered a crucial period of global competition. Whether the virtual asset industry can become Taiwan’s next national treasure depends on the cooperation and understanding of all sectors of society regarding the importance of this industry to Taiwan. The “Bitcoin and Virtual Currency Development Association” has compiled the experiences and viewpoints of industry experts, scholars, and industry representatives and published the “Bitcoin and Virtual Asset Development White Paper.” The white paper provides the following three recommendations for promoting the virtual asset industry in Taiwan for reference:
1. Promote Bitcoin policies and its application in Taiwan.
2. Promote the 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 of virtual assets, Bitcoin also has its own value and importance that should be paid attention to. 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” in 2023. This means that Bitcoin and gold are related. Therefore, individuals, corporations, and governments can obtain the same hedging effect as gold by including Bitcoin in their asset allocation, which can also help increase overall risk resilience. The Taiwanese government holds a large amount of gold, concentrated in a single location, which poses certain risks. Therefore, consideration should be given to how Bitcoin can provide additional insurance protection for Taiwan.
2. Bitcoin mining contributes to the development of renewable energy:
Bitcoin mining has the characteristic of storing electricity, which can convert the energy that would otherwise be wasted in the early stage of renewable energy development into assets or stored electricity. This helps overcome the weaknesses in renewable energy development and can complement Taiwan’s energy policies. Additionally, Taiwan continues to promote offshore wind power construction, with most potential sites located in the Taiwan Strait, which has strategic significance for Taiwan. If offshore wind farms are widely deployed in the Taiwan Strait, it could 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 financial barriers. The average remittance cost for cross-border remittances in 2021 reached 6.4%. By using the Lightning Network, people can quickly and almost costlessly make remittances. With the growing number of foreign workers in Taiwan, if the salaries of foreign workers can be transferred to their families in other countries immediately and without delay through the Lightning Network, it would be one of the application scenarios where virtual assets are combined with finance.
4. Bitcoin’s promotion of technological innovation:
Bitcoin’s use of blockchain technology leads technological innovation. For example, the Hong Kong Monetary Authority uses blockchain technology to launch green bonds, and the World Bank is considering tokenizing infrastructure to improve processing efficiency and increase transparency. Bitcoin wallet Strike combines the current financial system with Bitcoin, creating a new type of bank based on Bitcoin that allows users to send Bitcoin and fiat currencies worldwide instantly and at almost zero cost. The system also supports currency exchange between different fiat currencies.
Promoting the supervision of virtual assets and international exchanges:
Based on the aforementioned value of Bitcoin, the “Bitcoin and Virtual Currency Development Association” also covers the current legal regulatory framework for virtual assets in Taiwan in the “Bitcoin and Virtual Asset Development White Paper.” It also plans to conduct policy research, advocacy, and regulatory research on virtual assets in the future. In addition, the white paper mentions that the association will continue to promote international exchanges and learn from countries that are leading Taiwan in virtual asset regulation and development, in order to provide more information to the regulatory authorities and promote industry growth. This will also help Taiwan align with international standards more quickly, thereby promoting the upgrading and innovation of the entire 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 Bitcoin and virtual asset-related regulations and advocating for the application and development of virtual assets. It is expected that with the promotion from all sectors, the virtual asset industry will become Taiwan’s next national treasure.
The association will hold the “Bitcoin Development White Paper Launch Event and Key Forum on Taiwan and Bitcoin” at the “Taipei Ark” on Tuesday afternoon, March 12, 2024. Industry experts will be invited to share the impact and opportunities of cryptocurrencies on Taiwan’s future. The event will include:
– Summary presentation of the “Bitcoin and Virtual Asset Development White Paper.”
– A panel discussion on the theme “Taiwan Needs Bitcoin” to discuss the importance of Bitcoin for Taiwan.
– Sharing of the contents of the new books “Choices in a Changing Environment” and “Cryptocurrency Law,” analyzing strategies and legal issues related to cryptocurrencies in the new global context.
Free registration link.
This article is provided by the official source and does not represent the position or investment advice of our website. Readers must conduct their own careful evaluation.
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