Taiwan could see its first locally issued stablecoin go live in the second half of 2026, although regulators have yet to decide which currency the token will be pegged to.
Local media in Taiwan report that Financial Supervisory Commission Chairman Peng Jin-long told lawmakers this week that the virtual asset servicing bill has undergone initial cabinet reviews and could pass its third reading in the upcoming session. Regulations specific to stablecoins would follow within six months, setting the earliest possible launch at the end of 2026.
The legislation does not limit issuers to banks, although the FSC and Taiwan’s central bank agreed that financial institutions would lead issuances in the initial phase, Peng said.
What remains unclear is the monetary backing: a stablecoin is a digital token whose value is tied to that of a real-world asset such as fiat currency. Peng said the stablecoin could be pegged to the US dollar or Taiwan dollar, depending on market demand, but no decision has been made.
A coin backed by the US dollar would circumvent the most thorny problem in Taiwan’s financial system: strict limits on the export of Taiwan’s currency abroad.
Taiwan’s currency cannot legally circulate overseas, and the central bank has a long history of trying to control it to use it for transactions with no direct connection to the island.
By design, stablecoins facilitate cross-border settlements, a feature that could undermine decades of efforts to maintain currency overseas and prevent unofficial offshore pricing.
For now, regulators are developing rules based on full support for reserves, strict segregation of assets and national conservation requirements.
But the fundamental question of which currency will represent Taiwan’s first stablecoin remains unanswered, and the choice will determine whether the project becomes a low-risk payment tool or a challenge to the island’s monetary framework.
