Michaela
Taiwan has announced plans to launch a domestic stablecoin pegged to the local or U.S. dollar as early as the second half of 2026, pending passage of new crypto legislation.
Key Points
- Taiwan plans to launch a domestic stablecoin by H2 2026, pending passage of the Virtual Assets Service Act.
- Issuance will initially be limited to regulated financial institutions, drawing on EU MiCA regulations.
- The move positions Taiwan as a regional hub for digital finance amid global efforts to clarify stablecoin regulations.
According to local reports, Financial Supervisory Commission (FSC) Chairman Peng Jin-long stated Wednesday at a legislative hearing that the stablecoin’s legal framework, the Virtual Assets Service Act, should be scheduled for consideration in the current session and, if it advances smoothly, passed in the next session. He added that once the FSC issues the accompanying regulations, a six-month implementation period would be required before the law takes effect.
This week, the Cabinet is set to review the act after three previous meetings that Peng said had achieved a “high level of consensus.” He added that the draft bill is modeled on the European Union’s Markets in Crypto-Assets (MiCA) regulations and does not explicitly mandate that stablecoins be issued by financial institutions. However, for risk-management purposes, the FSC and the central bank have agreed that issuance will initially be limited to regulated financial institutions.
Taiwan is among several jurisdictions that have recently expressed interest in introducing a domestically pegged stablecoin. Earlier this week, ten major European banks applied to the Dutch Central Bank for approval to launch a euro-backed stablecoin, aiming for a second-half 2026 rollout.
Related: CFTC Opens Door for National Trust Banks to Issue Stablecoins
The euro-backed stablecoin is expected to enable 24/7 cross-border transactions, programmable payments, and smoother digital asset settlements, including tokenized assets and cryptocurrencies. It aims to deliver near-instant, low-cost payments while streamlining supply chain and financial processes.
The initiative comes as U.S. regulators prepare a legal framework for payment stablecoins under the GENIUS Act, signed by President Donald Trump in July, highlighting a global push for clearer digital currency regulations.
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Additionally, Taiwan’s push into stablecoins comes amid reports that the gоvernment is preparing an assessment of its Bitcoin holdings, as officials consider establishing a national Bitcoin reserve using seized coins, modeled after the U.S. Strategic Bitcoin Reserve.
The development of a Taiwan-issued stablecoin spotlights the island’s effort to position itself as a regional hub for digital finance, signaling a strategic push to modernize payments infrastructure and strengthen its presence in the emerging crypto economy.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
