Taiwan has officially confirmed plans to launch its first fully regulated stablecoin by the second half of 2026. This significant announcement was made by Financial Supervisory Commission (FSC) Chairman Peng Jin-long during a legislative hearing. The stablecoin introduction marks an important step in Taiwan’s journey toward establishing a structured and reliable framework for digital assets.
Legislative Timeline for Stablecoin Approval
According to Peng, the Virtual Assets Service Act will be placed on the legislative agenda during the current session, with passage expected in the following session, provided it progresses smoothly through the Legislative Yuan. Subordinate regulations will be announced shortly after the bill passes, with an additional six-month buffer period for implementation. Based on this timeline, Taiwan could see its first stablecoin launch by late 2026.
The draft legislation, inspired by the European Union’s Markets in Crypto-Assets Regulation, focuses on stringent requirements for issuers. Although the bill does not mandate financial institutions to issue stablecoins, regulators have agreed that only licensed financial institutions will be allowed to do so initially, ensuring robust risk management and oversight.
Currency Backing and Market Implications
A key unresolved question is the currency backing of Taiwan’s future stablecoin. Options under review include pegging the coin to the Taiwan dollar (TWD) or the U.S. dollar (USD). A USD-backed stablecoin would bypass legal restrictions on exporting Taiwan’s currency offshore, making it a more seamless option for cross-border transactions. Regardless of the decision, regulators emphasize full reserve backing, strict asset segregation, and domestic custody requirements for added security.
Taiwan’s stablecoin will classify as a “virtual commodity” rather than legal tender, as the government prohibits cryptocurrency use for retail payments and public services. The classification aligns with Taiwan’s commitment to robust anti-money laundering (AML) measures, which will become mandatory for Virtual Asset Service Providers (VASPs) by January 2025.
Global Context and Comparisons
Taiwan’s plans echo global trends in stablecoin issuance. For example, European financial institutions led by BNP Paribas and ING are set to launch a euro-pegged stablecoin by late 2025. Similarly, Sony Group announced plans for a USD-backed stablecoin launch in 2025, aimed at enhancing its digital platform and e-commerce capabilities.
Taiwan’s structured approach not only highlights its focus on financial stability but also reflects an effort to position the country as a leading jurisdiction in the digital asset space.
Why This Matters for Lifestyle Investors
For lifestyle investors and those interested in digital assets, Taiwan’s stablecoin plans present a unique opportunity to monitor market growth and possible investment prospects. One product beneficial for investors venturing into cryptocurrency is the Ledger Nano X Hardware Wallet, a secure device for storing digital assets like stablecoins. Investing in a reliable hardware wallet ensures your crypto assets remain safe and protected, especially as the landscape for digital finance evolves.
As Taiwan advances in its stablecoin journey, it joins a growing global push for regulated frameworks, further solidifying the role of digital currencies in modern economies.
