Taiwan Banks Pave Way for Stablecoin Adoption in Asia

Taiwan is at the forefront of stablecoin adoption in Asia, according to Justin Wang, CEO of Capital Layer. Wang believes that banks, not crypto-native companies, will determine how stablecoins are used across the region.

The country has passed its first virtual asset act, requiring exchanges and listed companies to comply with new licensing rules by 2027. Of Taiwan's 38 banks, Wang said 18 to 20 have already applied for stablecoin services licenses.

Cross-border settlement costs are driving demand for dollar-pegged stablecoins, particularly among AI hardware manufacturers in Taiwan. Taiwanese manufacturers produce the majority of the world's AI PCs and components, and Capital Layer has signed non-disclosure agreements with several device makers seeking to accept stablecoins as a payment corridor.

Lisa raised a caution that Wang did not fully resolve: if corporates settle cross-border trade increasingly in dollar-pegged stablecoins rather than local currency, it could suppress demand for currencies like the new Taiwan dollar and weaken the multiplier effect that reinvested capital provides to local economies.