Taiwan Targets Late 2026 for Stablecoin Debut; Banks to Gatekeep Issuance

Source: CoinEdition Original Title: Taiwan Targets Late 2026 for Stablecoin Debut; Banks to Gatekeep Issuance Original Link: Taiwan is accelerating its move into regulated digital assets, with officials confirming that the island’s first stablecoin could debut in the second half of 2026.

Financial Supervisory Commission (FSC) Chair Peng Jin-long stated this week that a Taiwan-issued stablecoin may enter the market “in the latter half of 2026 at the earliest,” depending on the speed of legislative progress.

Legislative Progress Toward 2026 Debut

The Virtual Assets Service Act, the core legal foundation for stablecoin oversight, has passed early Cabinet-level reviews and is expected to be submitted to the Legislative Yuan this session.

If the process runs smoothly, the bill could pass its third reading next session, after which the FSC would issue detailed regulations.

Peng noted that once subordinate rules are announced, a six-month buffer period is required before implementation. Accordingly, this places the earliest possible stablecoin launch in late 2026.

Notably, the draft law does not explicitly limit issuers to banks. However, the FSC and Taiwan’s central bank currently want only financial institutions to handle issuance.

Currency Peg: U.S. Dollar or New Taiwan Dollar?

A major unresolved issue is what the stablecoin will be pegged to. Regulators have not yet decided whether Taiwan’s first stablecoin should follow the U.S. dollar or the New Taiwan dollar (NTD).

Pegging it to the U.S. dollar would avoid complications arising from Taiwan’s strict rules that prevent the NTD from circulating offshore. But choosing the NTD could challenge long-standing central bank efforts to keep the currency onshore and prevent unofficial offshore pricing.

For now, regulators are working on rules requiring full reserves, separation of customer assets, and local custody.

Bitcoin Reserve Debate

Meanwhile, a political debate is emerging over whether Bitcoin should play a strategic role in Taiwan’s future.

Legislator Ko Ju-chun argued in a November hearing that Taiwan should consider adding Bitcoin to its national reserves, saying this would align with global expectations that central banks may start holding digital assets by 2030.

Ko questioned whether Taiwan can “wait until 2030,” noting the country’s heavy dependence on U.S. Treasuries and China’s economic cycle. Currently, more than 80% of Taiwan’s roughly $600 billion in foreign-exchange reserves is invested in U.S. debt.

He also criticized what he sees as an overly cautious attitude toward digital assets and urged the government to complete a full review of Bitcoin seized in criminal cases before deciding whether to hold or sell it.

Premier Cho Jung-tai has promised to release an updated assessment of Bitcoin reserves and an inventory of seized Bitcoin by the end of the year.

Analyst View

Analysts say both developments, the new stablecoin rules and the Bitcoin reserve debate, show that Taiwan is rethinking its technological and monetary strategy.

Commentator Bonnie Chang notes that global influence has shifted from hardware to software, AI, and digital finance, and that Taiwan must reassess its position. She adds that Taiwan’s unique geopolitical risks make diversification and forward-looking policies even more important.