Taiwan’s Banks Get a Crypto Makeover: Stablecoins on the Horizon!

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So, here we go again! The Taiwan FSC is cooking up a little something for June 2025. They’re thinking, “Hey, why not let our banks issue stablecoins tied to the new Taiwan dollar?” Because, you know, that’s exactly what we need—more coins! 🪙

According to some local gossip from Money UDN (you know, the usual suspects), the Taiwan Financial Supervisory Commission is all about this draft law for virtual asset service provision or VASP. Sounds fancy, right? One of the big highlights? Banks getting to issue their own stablecoins. Because who doesn’t want their bank to be a mini crypto factory? 🤷‍♂️

Chairman Peng Jinlong, bless his heart, thinks stablecoins will be the magic bridge between fiat and crypto. Like, “Look, everyone! You can now easily access the crypto trading market!” As if it’s that simple. In Taiwan, these stablecoins will be pegged to the new Taiwan dollar, not the U.S. dollar. Because, of course, we need to keep it local. 🇹🇼

And guess what? All these locally-issued stablecoins will be under the watchful eye of the Taiwan central bank. Because nothing says “trust” like a government watching your every move, right?

Now, Zhuang Xiuyuan, the director of the central bank, isn’t too thrilled about the popular stablecoins like Tether (USDT) and USD Coin (USDC). He’s like, “Those aren’t real dollar assets! They’re just pretending!” So, future stablecoins from Taiwan firms? They need a stamp of approval from the FSC before they can even think about hitting the market. Talk about a bureaucratic nightmare! 😅

To get that golden ticket from the Taiwan FSC, stablecoins have to jump through some hoops—issuer qualifications, token reserve allocation, and a bunch of other stuff that’ll be in the draft law. It’s like a game show, but with more paperwork and less fun.

When asked if Taiwan citizens can use these stablecoins for everyday transactions, Zhuang was like, “Well, there are some hurdles, like monetary policy and financial stability.” So, basically, don’t hold your breath, folks! 😬

Oh, and let’s not forget the pilot program for banks to offer crypto custody services, expected to kick off in the first quarter of 2025. Because who doesn’t want their bank to be a crypto babysitter? 🍼

And just to keep things spicy, Taiwan’s “VASP Registration Regulations” are in full swing as of January 2025. These rules are meant to keep the virtual asset service providers in check. You know, the usual anti-money laundering protocols and annual risk assessments. Because nothing says “fun” like a good old-fashioned audit! 📊

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2025-01-23 12:52