Taipei: A fintech expert in Taiwan has called for the issuance of a New Taiwan dollar (NTD) stablecoin, stating its importance in safeguarding Taiwan’s monetary sovereignty and reinforcing the country’s industrial competitiveness. The expert emphasizes the urgency of this initiative in the face of global trends toward stablecoins.
According to Focus Taiwan, 2025 is being viewed as the “first year of stablecoins,” driven by strong policy momentum in the United States. Stablecoins, which are cryptocurrencies designed to maintain a stable value and are typically pegged 1:1 to a fiat currency, are becoming widely used as settlement currencies for digital assets and tokenized real-world assets (RWAs). Currently, U.S. dollar-pegged stablecoins like USDT and USDC dominate the global market, accounting for about 99 percent.
Jeff Wen, a board member of the Taiwan FinTech Association, warned that Taiwan risks being sidelined in the emerging digital-finance infrastructure if it does not act soon. Wen explained that the issue transcends payment convenience and instead focuses on competition over monetary sovereignty and control of financial ledgers.
Wen suggested that an NTD stablecoin could serve as a medium of exchange and unit of account for RWA transactions, allowing on-chain financial products to be priced in New Taiwan dollars. He cautioned that without it, Taiwan’s financial products may struggle to circulate globally. As countries develop new accounting systems alongside traditional banking ledgers, Wen noted that Japan and South Korea are actively positioning their own currency-backed stablecoins. He warned that Taiwan could miss a strategic opportunity if it delays action.
According to the Taiwan External Trade Development Council, nearly 5 percent of domestic firms and more than 10 percent of Taiwanese companies operating overseas are already experimenting with stablecoins for cross-border payments. Wen highlighted that export-oriented technology firms may already be receiving U.S. dollar stablecoins, and without an NTD stablecoin, converting those funds into the local currency could reduce efficiency and erode competitiveness.
Wen proposed that Taiwan could leverage its semiconductor strength to issue specialized U.S. dollar stablecoins to lower transaction costs globally, while using Taiwan dollar stablecoins for payments within the domestic semiconductor and AI supply chains.
Financial Supervisory Commission Chairman Peng Jin-long mentioned that if virtual-asset legislation and related regulations are adopted soon, a Taiwan-issued stablecoin could debut as early as the second half of next year. Some critics argue there is little need for an NTD stablecoin, given Taiwan’s highly efficient domestic payment systems. In response, Peng highlighted the growing use of RWAs and potential domestic applications as reasons supporting the merits of a local-currency stablecoin.