Taiwan’s Domestic Stablecoin Set for Mid-2026 Launch Under New Digital Finance Strategy

 

Taiwan is taking a major step toward the future of finance as regulators target mid-2026 for the launch of the country’s first domestically issued stablecoin. The move reflects a broader strategy to modernize the financial system, strengthen digital infrastructure, and position Taiwan as a regional leader in compliant cryptocurrency development.

The Financial Supervisory Commission (FSC) has signaled that groundwork for a stablecoin has already begun, with policymakers laying down a legal framework that ensures security, transparency, and consumer protection. Unlike unregulated cryptocurrencies, this digital token will be overseen by government authorities and issued in collaboration with locally licensed financial institutions.

A stablecoin is a form of digital currency designed to maintain a stable value by being backed by reserve assets such as fiat currency or government securities. In Taiwan’s case, the proposed digital currency is expected to operate under tight supervision, minimizing volatility and financial risk while improving transaction speed and cost efficiency.

The government is currently finalizing legislation that will regulate virtual asset services providers, including exchanges and custodians. Once the law becomes effective, regulatory authorities will develop additional rules specific to stablecoin issuance, including requirements on capital reserves, audits, and enterprise risk controls. Industry insiders say the regulatory process will likely take several months after the law is passed, making mid-2026 the most realistic target for launch.

Initially, Taiwan’s stablecoin will most likely be issued by commercial banks rather than technology companies or cryptocurrency exchanges. Officials believe that banks are better equipped to meet compliance standards, manage reserves responsibly, and safeguard customer assets. However, once the system becomes stable, regulators may consider opening the market to a broader range of licensed institutions.

One key detail still under discussion is which currency the new stablecoin will be pegged to. Authorities have not yet confirmed whether it will be linked to the New Taiwan Dollar or to the US Dollar. A domestic currency peg would support Taiwan’s monetary ecosystem, while a US dollar-based model could offer easier integration into global trade and finance.

If fully implemented, the stablecoin could transform electronic payments, allowing faster settlement across digital platforms and reducing reliance on cash and traditional bank transfers. For businesses, especially exporters and fintech firms, the system could deliver faster cross-border transactions and greater access to automated financial tools.

Taiwan’s cautious but forward-looking approach sets it apart in Asia’s digital currency race. Instead of allowing rapid and unregulated growth, the government is creating a structured system that supports innovation while protecting the economy. If successful, the project could serve as a model for other nations attempting to regulate digital currencies without stifling progress.

FAQs

When is Taiwan’s stablecoin expected to launch?

The target launch timeline is mid-2026, subject to regulatory approval and completion of technical safeguards.

Who will issue Taiwan’s stablecoin?

Commercial banks are expected to be the first issuers, as they already operate under strict financial regulations.

Will the stablecoin replace physical money?

No. The stablecoin is intended to complement existing currency, not replace notes or coins.

Is Taiwan’s stablecoin the same as a central bank digital currency?

No. It will be a privately issued digital asset regulated by financial authorities, not directly issued by the central bank.

Which currency will the stablecoin be tied to?

Authorities are considering both the New Taiwan Dollar and the US Dollar, but no final decision has been announced.