As tensions escalate globally, Taiwan recently conducted an important regional security exercise called “2024 TTX Regional Security Exercise.” The exercise was organized by Kuomintang legislator Chen Yongkang, the Taiwan Security Research Center, and Director Liu Fuguo. It successfully attracted the participation of 170 scholars from both domestic and international backgrounds. This event not only examined Taiwan’s preparedness for potential crises but also proposed multiple recommendations to enhance national security, including the role of “virtual currency” during times of war.
Contents:
Toggle
Examination and Countermeasures for Energy Shortages
Addressing Energy Challenges: Diversification and Enhanced Reserves
Financial Strategies and the Outlook for Virtual Currency
Dealing with Financial Crises and the Role of Virtual Currency
Recommendations for Strengthening Communication Networks
Enhancing Communication Reliability
Taiwan’s Approach to Cryptocurrency Remains in the Anti-Money Laundering and Anti-Fraud Stage
Liang Qiyuan, a contracted researcher at the Chung-Hua Institution for Economic Research, pointed out key issues in Taiwan’s energy supply. Due to the intermittent nature of renewable energy and insufficient natural gas supply, it is predicted that Taiwan will face severe insufficient reserve capacity until 2028. Liang Qiyuan suggested enhancing reserves of energy such as nuclear power and natural gas to ensure an adequate power supply during crises.
Du Zichen, the Director of the Industrial Economics and Trends Research Center at the Industrial Technology Research Institute, discussed in depth the effective utilization of foreign exchange reserves in the event of a Taiwan Strait crisis. He proposed the key role that virtual currency could potentially play during wartime and recommended that Taiwan increase monetary resources through issuing international war bonds, among other methods, to be prepared for potential crises.
Du Zichen stated that China is implementing digital yuan, and the United States is also discussing whether to implement digital dollar, which may hold a certain position in the world in the future. Therefore, it is necessary for Taiwan to simulate and observe the potential role of virtual currency during war.
The exercise also raised concerns about the vulnerability of communication networks. A telecommunications industry representative pointed out that Taiwan’s main communication networks are too centralized, making them susceptible to attacks during crises. He suggested that the government consider using existing cable television networks as alternative communication channels to increase diversity and stability.
The “2024 TTX Regional Security Exercise” 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 and custody, unable to keep up with the trend. For instance, the MiCA framework in Europe has already made comprehensive plans for asset management and advisory services.
Currently, there are discussions in Taiwan’s private sector regarding the application of virtual currency in national defense issues. It seems 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
Related Reading:
Standard Chartered: Ethereum Spot ETF Could Still Be Approved in May, ETH Could Reach $8,000 by Year-End
CoinEx: Why the Bitcoin Halving in 2024 is a Once-in-a-Lifetime Event