Taiwan Considers Bank-Issued Stablecoin to Cut Cross-Border Trade Costs
Taiwan is exploring a framework to integrate stablecoins into its banking system, with regulators proposing that only licensed banks be allowed to issue the first wave of local stablecoins. The move is aimed at reducing foreign-exchange and settlement costs for exporters and importers, speeding up cross-border payments and encouraging corporate use under clearer legal supervision.
Limiting issuance to banks is designed to combine the efficiency of digital assets with existing compliance, custody and consumer-protection structures, which authorities say will help manage AML/CFT and systemic risks. Market participants and payment providers will closely watch technical standards, interoperability with conventional rails and how the central bank coordinates oversight — factors that will determine whether the initiative meaningfully lowers trade frictions while preserving financial stability.