Stablecoins in Taiwan’s Plans

According to official Taiwanese government sources and local media reports, Taiwan is preparing to introduce stablecoins into its financial system. Work on the regulatory framework is already well advanced, accompanied by an ongoing debate over which currency should serve as the foundation for such tokens. The options under consideration include stablecoins pegged either to the New Taiwan dollar or to the US dollar.

The topic was discussed at a December forum dedicated to stablecoins and international trade, attended by representatives of both the government and the financial sector. As reported by local media, the primary goal of the proposed solutions is to reduce the cost of cross-border payments, which can currently reach as much as 5 percent and are often hidden within bank fees and intermediary charges.

A US dollar–backed stablecoin could simplify international settlements and bypass restrictions on the circulation of the New Taiwan dollar outside the country. On the other hand, a stablecoin linked to the local currency would be better aligned with Taiwan’s domestic payment system and the needs of Taiwanese businesses.

Alex Liu, CEO of the MaiCoin exchange and a representative of the digital asset industry, emphasized that a stablecoin denominated in New Taiwan dollars should primarily serve a practical purpose. In his view, the goal is to improve settlement efficiency and manage foreign exchange risk more effectively, rather than to encourage speculation. He noted that exporters are increasingly feeling the impact of currency fluctuations.

Liu also pointed out that the New Taiwan dollar is already backed by around $600 billion in US dollar–denominated assets, making it relatively stable. In his opinion, Taiwan’s stablecoin market could turn out to be an underestimated advantage, especially given that a local exchange has recently ranked among the global leaders in terms of market capitalization.

Government information indicates that stablecoins will be regulated under a new law covering virtual asset service providers. The proposed rules require full backing of tokens with fiat currencies, exclude algorithmic models, and prohibit the payment of interest. In the initial phase, the issuance of stablecoins will be limited to banks. If the legislative process proceeds without delays, the regulations could come into force in the first half of 2026.