Taiwan could see its first locally issued stablecoin go live in the second half of 2026, although regulators have not yet decided which currency the token will be pegged to.
Local media in Taiwan report that Financial Supervision Commission Chairman Peng Jin-long told lawmakers this week that the Virtual Asset Services Bill has passed initial cabinet reviews and could pass its third reading in the next session. Specific regulations for stablecoins would be implemented within six months, putting the earliest possible launch at the end of 2026.
The legislation does not restrict issuers to banks, although the FSC and Taiwan’s central bank have agreed that financial institutions will lead issuance in the initial stage, Peng said.
What is unclear is the currency’s backing: a stablecoin is a digital token whose value is pegged to that of a real-world asset, such as a fiat currency. Peng said the stablecoin could be pegged to the US dollar or the Taiwan dollar, depending on market demand, but no decision has been made.
A currency backed by the US dollar would avoid the thorniest issue in Taiwan’s financial system: strict limits on the export of Taiwanese currency abroad.
Taiwan’s currency cannot legally circulate abroad, and the central bank has a long history of police attempts to use it for transactions without a direct connection to the island.
Stablecoins by design facilitate cross-border settlement, a feature that could undermine decades of efforts to keep the currency in the country and prevent unofficial pricing abroad.
For now, regulators are drafting rules based on full reserve support, strict asset segregation and domestic custody requirements.
But the basic question of which currency will represent Taiwan’s first stablecoin remains unresolved, and the choice will determine whether the project becomes a low-risk payments tool or a challenge to the island’s monetary framework.
