Taiwan is on track to issue its first locally issued stablecoin as early as the second half of 2026, according to Financial Supervisory Commission Chair Peng Jin-long. While regulations regarding the currency backing are still being determined, analysts believe Taiwan’s late entry into the stablecoin market could hinder its success. The draft Virtual Assets Service Act has been approved by cabinet and is awaiting a final vote. Stablecoins will be subject to new regulations within six months, paving the way for potential launch in late 2026. Financial institutions will likely lead issuance in the initial phase. However, regulators are still undecided on whether the stablecoin will peg to the New Taiwan dollar (NTD) or the US dollar (USD). This choice could significantly influence the project’s impact on currency controls within the region. 100% of stablecoins currently in circulation are USD-pegged, indicating the dominance of the US dollar in the digital asset sector. To counter this, nations worldwide are actively positioning to issue their own fiat-backed stablecoins. Europe is collaborating through Qivalis to develop an EU-based token for on-chain payments. Israel is also set to launch its own stablecoin pegged to the shekel by 2026, while Japan’s Sony Bank plans to launch a dollar-backed stablecoin in America by fiscal year 2026. In South Korea, regulations are being put in place to limit issuance of Korean-won-pegged stablecoins to consortia with commercial banks holding majority ownership. The global stablecoin market is projected to reach between $1.9 trillion and $4 trillion by 2030.