Taiwan Targets Late 2026 for First Local Stablecoin Launch Amid Regulatory Uncertainty
Taiwan's Financial Supervisory Commission has advanced draft legislation for a locally issued stablecoin, with potential rollout in the second half of 2026. The VIRTUAL Assets Service Act cleared preliminary cabinet reviews and awaits final legislative approval.
Regulators remain undecided between pegging the stablecoin to the New Taiwan dollar or US dollar—a choice with significant implications for cross-border capital flows. Financial institutions will lead initial issuance, though the framework allows non-bank participants.
The central bank's strict currency controls complicate the project. A USD-pegged stablecoin could circumvent offshore NTD restrictions, while an NTD-backed version WOULD face existing prohibitions on international circulation.
Market observers note Taiwan's late entry into stablecoins may pose adoption challenges. James Lee of TAITRA has voiced skepticism about both currency peg options, reflecting broader industry caution.
