Taiwan Aims for Late-2026 Launch of Its First Domestic Stablecoin

Taiwan's financial sector is gearing up for a major digital leap—its own government-backed stablecoin is slated for a late-2026 debut.

The Race for Digital Sovereignty

Forget waiting on global giants. This move positions Taiwan to carve out its own space in the digital currency arena, aiming to create a homegrown alternative to international stablecoins.

Why It Matters for Traders

A state-sanctioned stablecoin could streamline local crypto transactions, potentially cutting through the red tape that often bogs down cross-border payments. It's a direct play for control over the digital yuan's regional influence—because who wants their monetary policy dictated from abroad?

The Regulatory Tightrope

Launching this isn't just a technical challenge. Regulators will be walking a fine line, trying to foster innovation without spooking traditional banks—who are probably already drafting worried memos about disintermediation.

The Bottom Line

If successful, Taiwan's stablecoin could become a regional benchmark, proving that smaller economies can punch above their weight in the crypto space. It's a bold bet on digital finance's future, with the usual caveat: every government-backed digital asset comes with a side of promises and a healthy dose of 'we'll see.' After all, in finance, the only thing more stable than a good stablecoin is a bureaucrat's love for a lengthy rollout timeline.

Taiwan to Let Banks Lead Stablecoin Rollout as Regulators Tighten Controls

The draft law does not confine issuance to banks, but Peng said financial institutions will take the lead in the early stages, reflecting a cautious approach as regulators open the door to domestic digital tokens.

The FSC is coordinating policy development with the Central Bank of the Republic of China (Taiwan), which has long enforced strict controls to keep the Taiwan dollar from circulating overseas.

That constraint is shaping the stablecoin debate. A token pegged to the Taiwan dollar would collide with existing foreign-exchange rules, as the currency is not allowed to circulate offshore.

A US dollar-backed stablecoin, by contrast, would avoid the thorniest regulatory issues and align more closely with global settlement use cases tied to cross-border payments.

Stablecoins, by design, move value across borders with speed and low cost, features that could undercut decades of policy aimed at keeping the local currency onshore and preventing unofficial offshore pricing.

Regulators are now drafting guardrails requiring full reserve backing, strict segregation of client assets and domestic custody to limit risk at launch.

What remains undecided is the anchor currency itself. Peng said the final choice will depend on market demand, with no commitment yet to either the US dollar or the Taiwan dollar.

Taiwan Weighs Adding Bitcoin to National Reserves

As reported, Taiwan’s government is moving closer to integrating Bitcoin into its national reserve strategy, with the island’s Executive Yuan and Central Bank agreeing to evaluate Bitcoin as a potential strategic asset and explore pilot holdings using seized BTC currently awaiting auction.

BREAKING: TAIWAN'S CENTRAL BANK TO OFFICIALLY PILOT A STRATEGIC #BITCOIN RESERVE

THIS IS ABSOLUTELY MASSIVEpic.twitter.com/V6Xd6uyc6p

In August, Taiwanese prosecutors indicted 14 individuals in the nation’s largest crypto money-laundering case, exposing a NT$2.3 billion ($75 million) fraud that deceived over 1,500 victims through fake crypto exchange franchises.

The operation, led by Shi Qiren, ran more than 40 storefronts under names like “CoinW” and “BiXiang Technology,” posing as licensed exchanges while secretly funneling investor funds into overseas crypto accounts.

Authorities seized cash, crypto, and luxury assets worth over NT$100 million, while Shi faces up to 25 years in prison for fraud, money laundering, and organized crime.

The group’s success hinged on exploiting regulatory blind spots in Taiwan’s crypto oversight. By claiming false approval from the Financial Supervisory Commission, the network built investor trust, collected hefty franchise fees, and used “deposit machines” to mimic legitimate exchange operations.

Prosecutors described the scheme as “systematic fraud” that Leveraged Taiwan’s crypto curiosity and weak enforcement.