Taiwan’s long-anticipated domestic stablecoin could debut as early as June or July, as regulators move closer to establishing a legal framework for the oversight of digital assets, Financial Supervisory Commission (FSC) Chairman Peng Jin-lung (彭金隆) said yesterday.
Peng told lawmakers during a meeting of the legislature’s Finance Committee that a draft bill for regulating virtual asset service providers is set to be sent to the Cabinet for review later this week before being submitted to the legislature.
If the bill advances smoothly, the legislative process could be completed in the first half of next year, allowing the act to take effect in the second half, he said.
Photo: Wang Yi-sung, Taipei Times
“The introduction of a domestic stablecoin would mark an important milestone in bringing virtual-asset activities into a fully regulated environment,” Peng said.
Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically by being pegged to a fiat currency or a commodity such as gold.
A draft bill for virtual asset service providers would establish a regulatory framework for companies handling virtual assets by requiring them to register or obtain licenses, meet capital and operational thresholds, implement controls to counter money laundering, and adhere to consumer-protection and reporting requirements.
The FSC and the central bank have reached a consensus on how stablecoins should be implemented, Peng said.
In the initial stage, issuance would be restricted to licensed financial institutions — a measure regulators view as necessary to manage risks and safeguard user funds, he said.
The agencies are continuing to coordinate on regulatory details, including reserve requirements, audit mechanisms and investor-protection rules, he said.
Only after the rules are finalized would the FSC authorize the issuance of stablecoins, meaning that the earliest rollout of a New Taiwan dollar-backed stablecoin would be in the middle of next year, Peng said.
The initiative is seen as a crucial step toward building a regulated digital-asset ecosystem, particularly after several years of rapid growth in cryptocurrency trading and rising concerns over financial stability, he said.
Industry experts have closely followed the government’s progress, viewing the legalization of stablecoin as the foundation for developing compliant digital-finance products, improving payment efficiency and strengthening money-laundering controls.
Banks and fintech firms are expected to explore pilot applications once the regulatory pathway becomes clearer.
While details regarding the first issuers and technical standards are still being discussed, Taiwan’s approach would underscore prudential supervision, consumer protection and alignment with international regulatory trends, Peng said.
Local banks have signaled interest in issuing stablecoins, but emphasize that the tokens would need to be interoperable across institutions to function effectively in real-world financial applications.
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