Taiwan looks set to launch its first locally issued stablecoin in the second half of next year, initially to be issued by financial institutions only. However, it remains unclear to what fiat currency it will be pegged.
Taiwan’s Financial Supervisory Commission (FSC) Chairman Peng Jin-lung told lawmakers, during a meeting of the legislature’s Finance Committee last week, that a draft bill for regulating virtual asset service providers is set to be sent to the Cabinet for review later this week before being submitted to the legislature, according to local reports.
The so-called “Virtual Assets Service Act,” which will provide the legal basis for the country’s first stablecoin, has reportedly cleared initial cabinet reviews and could pass its third reading next session, with Peng saying previous meetings produced a “high level of consensus.”
According to the reports, regulations specific to stablecoins are expected to follow within six months, potentially putting the earliest possible launch in late 2026.
Peng said the draft legislation was derived from the European Union’s landmark Markets in Crypto-Assets (MiCA) and would not explicitly require stablecoins to be issued by financial institutions. He added, however, that from a risk-management standpoint, the FSC and the central bank agreed that only financial institutions would be permitted to issue them in the initial stage.
Peng reportedly emphasized that, while details regarding the first issuers and technical standards are still being discussed, Taiwan’s approach would focus on prudential supervision, consumer protection, and alignment with international regulatory trends.
One of the technical details still being discussed is which currency the stablecoin would be tied to, with Peng stating that it could be pegged to either the U.S. dollar or the Taiwan dollar, depending on market demand.
Unknowns aside, the FSC Chair’s comments represent a notable step closer to a Taiwan-issued stablecoin. Its introduction would also represent another landmark on Taiwan’s ongoing digitization journey.
In 2024, the Taiwanese government allocated $94 million to integrate advanced technologies into its national disaster preparedness.
This was followed in March by the announcement that the country is working towards the launch of a national digital wallet that will hold its citizens’ digital ID, certificates, licenses, and other personally identifiable information by the end of 2025.
Watch | MiCA and the Future of Stablecoins: What Comes Next for Tether?
Source: https://coingeek.com/taiwan-to-launch-first-locally-issued-stablecoin-by-2026/
