Taiwan is moving closer to a pivotal moment in its digital transformation. According to local regulators, the country could introduce its first stablecoin issued directly by the state in the second half of 2026. The digital currency would be pegged either to the New Taiwan dollar or the U.S. dollar, and its emergence is closely tied to new legislation on virtual assets.

Regulatory framework inspired by Europe

FSC Chair Peng Jin-lon confirmed that the launch timeline for the stablecoin follows the approval schedule of upcoming legislation. If the virtual assets bill is passed during the next parliamentary session, the country will be able to move toward issuance after a six-month transition period.

The bill is modeled on Europe’s MiCA framework, now seen as a global benchmark for governing cryptocurrency markets. Taiwan aims to adopt similar principles to strengthen investor confidence and build predictable rules.

Initially, issuance of stablecoins will be limited to regulated entities, with non-financial institutions joining later. The decision reflects Taiwan’s ambition to gradually open the market to more participants. The move comes partly in response to last year’s investigations into MaiCoin and BitoPro over alleged AML violations. Despite increased oversight, Taiwan still lacks an official stablecoin pegged to either the U.S. dollar or the New Taiwan dollar.

Debate over bitcoin in national reserves

Alongside developing the stablecoin framework, Taiwanese lawmakers are debating how to handle bitcoin seized in criminal cases. The government is analyzing the total amount of digital assets it holds, and some politicians want them included in national reserves.

Legislator Ju-Chun has urged the cabinet to follow other countries and use bitcoin as a hedge against economic uncertainty, noting that the U.S. and others are increasingly treating cryptocurrencies as strategic assets. For now, however, Taiwan’s reserves remain dominated by U.S. Treasuries and gold.

What 2026 could bring

If the legislative process moves forward as planned, the second half of 2026 could mark Taiwan’s entry into the era of regulated stablecoins, while also opening new avenues for treating cryptocurrencies as part of state finance.

The change would bolster the local fintech ecosystem, provide investors with greater certainty, and offer citizens safer, more accessible digital services. More broadly, it underscores Asia’s intention not only to innovate technologically but also to build a stable, well-regulated environment for long-term crypto adoption.

Sources:

https://focustaiwan.tw/business/202512030008

https://cointelegraph.com/news/taiwan-stablecoin-regulations-2026-report