Taiwan Plans First Regulated Stablecoin Launch by Late 2026
Taiwan’s Financial Supervisory Commission aims to introduce a fully backed, locally issued stablecoin by late 2026, with financial institutions leading issuance and peg currency choice still undecided.
Taiwan’s Financial Supervisory Commission (FSC) plans to launch the nation’s first locally issued stablecoin in late 2026, following the passage of the draft Virtual Assets Service Act and subsequent stablecoin-specific regulations within six months. FSC Chair Peng Jin-long stated that financial institutions will lead initial issuance, with the stablecoin backed by full reserves, segregated assets, and domestic custody. Regulators have not yet decided whether the coin will be pegged to the U.S. dollar or Taiwan dollar, a choice with significant implications for cross-border settlement and Taiwan’s currency control framework.
- Stablecoin: A cryptocurrency pegged to a stable asset, such as a fiat currency, to reduce price volatility.
- Peg Currency: The specific currency to which a stablecoin’s value is tied, such as the U.S. dollar or Taiwan dollar.
- Full Reserve Backing: A requirement that stablecoin issuers hold reserves equal to 100% of the circulating supply to ensure redemption at par value.