Taiwan will issue a New Taiwan Dollar stablecoin? Financial Supervisory Commission eases restrictions: Some banks are already in discussions.

In the wave of global financial digitalization, whether Taiwan will usher in the “New Taiwan Dollar stablecoin” has become the focus of the market. The Financial Supervisory Commission recently revealed that some banks are considering the issuance of a stablecoin based on the New Taiwan Dollar. However, it still needs to wait for the legislative passage of the “Virtual Asset Service Act” and the establishment of relevant regulations by the Financial Supervisory Commission before it can truly take shape, symbolizing that the promotion of Taiwan’s stablecoin has officially entered the incubation stage.

Legislative Progress: The virtual asset special law has been submitted to the Executive Yuan.

The Financial Supervisory Commission’s Securities and Futures Bureau stated that the draft of the “Virtual Asset Service Act” was submitted to the Executive Yuan for review on June 27. This specialized law covers multiple chapters and was finalized after gathering industry opinions through 20 public briefing sessions. Subsequently, it needs further inter-ministerial coordination, including the Central Bank’s opinions on monetary policy and the Ministry of Justice’s regulations on criminal responsibility at the supervisory level.

The final version will only be submitted to the Legislative Yuan for review after completion. In other words, the specific timeline remains uncertain.

Issuance threshold: The Financial Supervisory Commission and the Central Bank jointly oversee.

The Deputy Director of the Banking Bureau of the Financial Supervisory Commission, Hou Li-Yang, pointed out that the draft includes provisions for the issuance and management of stablecoins. In the future, if one wishes to issue a New Taiwan Dollar stablecoin within Taiwan, they must obtain permission from the competent authority. Key regulatory points include:

Preparation of Assets and Audits: Ensure that the issuer has sufficient reserves and undergoes independent audits.

Information Disclosure: Require transparent disclosure of asset status to maintain user trust.

Reserve provision: Avoid the risk of fund misappropriation.

Business Reporting: Strengthen Daily Supervision.

He revealed that there are indeed banks currently discussing relevant plans, but no concrete decisions have been made yet; at the same time, he emphasized that in the future, they will continue to exchange views with the central bank to balance innovation and financial stability.

( The Financial Supervisory Commission exposes the key points of stablecoin regulation, planning to allow banks to issue stablecoins. Will investors buy in? )

Japan leads Asian countries: Yen stablecoin to launch as early as this fall.

Another focus of great external attention is the international progress. The Japan Financial Services Agency (FSA) has signaled that it will approve the first yen stablecoin as early as this autumn, becoming the first fiat stablecoin officially endorsed by a regulatory body in Asia.

(WebX｜JPYC Opens the Era of Yen Stablecoin: Entering Payments and Financing, Calling for 85 Trillion Yen Circulation Over Five Years )

This creates a comparative effect in the Taiwanese market: with the active promotion in neighboring countries, whether Taiwan can accelerate its pace to avoid falling behind international trends has become the most concerning issue in the finance and technology circles.

Stablecoin Market Role: Digital Expansion of the Currency Landscape

Stablecoins can be seen as a strategic extension of financial and monetary competition among countries. Given that most of the circulating stablecoins are pegged to the US dollar, the European Union and China have also expressed their intention to launch a digital euro and a renminbi stablecoin following the implementation of the US “GENIUS” Act, to avoid falling behind in this digital race.

Therefore, if a “New Taiwan Dollar stablecoin” can emerge in the future, it will help enhance the liquidity and international standing of the local market, while reducing the foreign exchange costs for Taiwanese users when converting to and from USD.

A few days ago, the Financial Supervisory Commission also stated that it had partnered with multiple financial institutions last year to establish the “RWA Tokenization Group,” intending to create a single RWA tokenization trading platform in Taiwan for domestic and foreign bonds and funds, promoting practical applications of asset on-chain and regulatory integration, indicating that Taiwan is already on the path of financial digitalization.

( Taiwan launches RWA tokenization trial platform! The Financial Supervisory Commission partners with the financial industry to open a new chapter in asset on-chain )

Is Taiwan going to issue a new Taiwan dollar stablecoin? The Financial Supervisory Commission has loosened its stance: some banks are already discussing it. First appeared in Chain News ABMedia.