Taiwan to Launch Its First Local Stablecoin by End-2026, Pegged to US Dollar or New Taiwan Dollar, Regulators Say

According to CoinDesk, Taiwan’s Financial Supervisory Commission is weighing the launch of the first locally issued stablecoin with potential timing in the second half of 2026. The peg—US Dollar or New Taiwan Dollar—has not been decided, with currency controls in focus.

FSC Chairman Thomas Huang told lawmakers the draft Virtual Asset Service Act cleared cabinet review and could pass in the next session. Stablecoin regulations may be introduced within six months, with issuance expected from financial institutions rather than banks.

If pegged to the US Dollar, the stablecoin could avoid offshore NT$ restrictions, while the central bank tightens oversight. Stablecoins are suited to cross-border settlements and could influence onshore currency management and pricing.

Regulators seek full reserve backing, asset segregation, and local custody. Market demand and policy timing will shape the peg and rollout, with credibility resting on transparent reserve practices and custody arrangements.