Taiwan Could Launch Local Stablecoin by 2026 Amid USDT-USD Dominance
The post Taiwan Could Launch Local Stablecoin by 2026 Amid USDT-USD Dominance appeared on BitcoinEthereumNews.com.
Taiwan plans to launch its first locally issued stablecoin by late 2026, pending regulatory approval. The token’s peg—either to the New Taiwan dollar or US dollar—remains undecided, with financial institutions set to lead issuance under strict oversight to ensure stability and compliance. Taiwan’s Financial Supervisory Commission has advanced the Virtual Assets Service Act, paving the way for stablecoin regulations within six months of passage. The initiative aims to integrate digital assets into Taiwan’s financial system while addressing risks to currency controls and payment infrastructure. Global stablecoin market dominance by USD-pegged tokens stands at 99%, posing challenges for Taiwan’s entry as a late adopter with limited scalability. Taiwan stablecoin launch eyed for 2026: Regulators debate NTD or USD peg amid global crypto shifts. Explore implications for Asia’s digital finance—stay ahead with expert insights. What is Taiwan’s Planned Stablecoin Launch? Taiwan stablecoin initiatives represent a significant step toward integrating digital assets into the island’s regulated financial ecosystem. The Financial Supervisory Commission (FSC) has indicated that Taiwan’s first locally issued stablecoin could debut as early as the second half of 2026, following the anticipated passage of the Virtual Assets Service Act. This legislation, currently under review by the Executive Yuan, would establish a framework for supervising digital asset businesses, including stablecoin issuance pegged to the New Taiwan dollar (NTD) or the US dollar (USD). The move underscores Taiwan’s efforts to balance innovation with robust oversight, ensuring that stablecoins maintain full reserve backing and adhere to domestic custody requirements. How Will Taiwan’s Stablecoin Regulations Address Currency Pegging Challenges? Taiwan’s regulators face critical decisions on the stablecoin’s currency backing, which could profoundly influence regional financial dynamics. A peg to the USD would allow greater flexibility in cross-border applications, circumventing strict controls on exporting the NTD offshore. However, Taiwan’s central bank has historically enforced rigorous rules…
