[Perspective] Taiwan Should Learn from Singapore’s Experience to Promote the Development of G10 Currency Pegged Stablecoins

I. The Rise of Stablecoins: A “Stable Force” in Financial Markets
In recent years, one of the most noteworthy emerging assets in global financial markets is undoubtedly “stablecoins.” Stablecoins are digital tokens that are pegged to specific assets (such as fiat currencies, gold, or other commodities), which helps to maintain their price stability.
Due to their significantly lower volatility compared to mainstream cryptocurrencies like Bitcoin and Ethereum, stablecoins have not only become a key bridge between traditional finance and the digital asset market, but they are also gradually demonstrating immense potential in areas such as cross-border payments, international remittances, and financial inclusion.
According to statistics, the total issuance of stablecoins globally has surpassed $170 billion, with about 90% pegged to the US dollar, highlighting the absolute dominance of the dollar in international financial settlements.
However, there is also potential demand for other major fiat currencies (such as the Euro, British Pound, and Japanese Yen), which is gradually emerging amid regulatory and fintech trends in various countries. For an export-oriented economy like Taiwan, how to leverage stablecoins to enhance the efficiency of cross-border capital flows and promote financial inclusion has become an urgent issue.

II. Global Regulatory Trends: Leading Examples from Singapore and Hong Kong
Despite the promising outlook for the stablecoin market, a lack of proper regulation could lead to risks such as financial money laundering, illegal capital outflows, and insufficient reserves.
To reduce uncertainty, governments and central banks worldwide have begun to develop regulatory frameworks. For instance, the Hong Kong Monetary Authority (HKMA) is piloting the use of a Hong Kong dollar stablecoin in cross-border payments, while the Monetary Authority of Singapore (MAS) has gone a step further by launching a stablecoin regulatory framework (SCS) in 2023, allowing for the issuance of stablecoins pegged to G10 currencies and emphasizing reserve management and information transparency.
Singapore’s approach has several distinctive features: First, it clearly outlines the conditions for issuance and regulatory requirements, including reserve ratios and auditing mechanisms; second, it allows qualified entities to issue single-currency pegged stablecoins, enabling the market to decide the types of currencies issued based on demand; third, its open and flexible attitude has attracted international issuers (such as Circle and Paxos) to establish operations, quickly driving the rise of Singapore’s stablecoin ecosystem. These successful experiences undoubtedly provide Taiwan with a viable development path.

III. Advantages for Taiwan in Developing Stablecoins: Foreign Exchange Reserves and Technological Strength
If Taiwan aims to promote stablecoin business, it has the following advantages to leverage:
– Strong foreign exchange reserves
Taiwan’s foreign exchange reserves exceed $540 billion, ranking among the top globally. This robust economic support not only enhances market confidence but also provides a sufficient backing for the legal reserves of stablecoins. Once the government or financial institutions implement a scaled reserve mechanism, it will help maintain the stability and liquidity of stablecoin prices.
– A complete financial system and high electronic payment penetration
Taiwan has a sound banking and securities market, with a continually increasing penetration rate of electronic payments, and the public’s acceptance of fintech is generally rising. These conditions facilitate the practical application of stablecoins in payments, remittances, and settlements, and can enhance market recognition of digital assets.
– Information and communication technology (ICT) and artificial intelligence (AI) capabilities
Taiwan has international competitiveness in the semiconductor and ICT industries, along with a favorable research and development environment. If combined with blockchain and AI technologies to create safer and more efficient stablecoin trading or regulatory platforms, it could further consolidate Taiwan’s position in fintech in the Asia-Pacific region.

IV. The Practical Benefits of Stablecoins for Taiwan: Cross-Border Payments and Inclusive Finance
– Cross-border trade and international settlements
Taiwan is a well-known trade-oriented economy with a high dependence on exports of electronic products and precision machinery, accompanied by a significant demand for cross-border capital flows. If exporters or small and medium-sized enterprises could use compliant US dollar or Euro stablecoins to accelerate payment and collection processes, it would not only reduce risks arising from exchange rate fluctuations but also lower transaction costs and shorten settlement times through blockchain technology.
– Remittance needs of remote areas and foreign migrant workers
There is a considerable number of foreign migrant workers in Taiwan, and financial services in rural areas are also lacking. If a low-threshold, high-convenience stablecoin payment system could replace traditional remittance channels, it would significantly reduce handling fees and processing times, promoting the practical implementation of inclusive finance in Taiwan. This would improve the unequal economic situations of foreign migrant workers and disadvantaged groups, further fostering social inclusion.

V. Learning from Singapore’s Experience: Three Major Strategies for Taiwan
– Strategy 1: Open the issuance of G10 currency stablecoins
Referring to the framework of the Monetary Authority of Singapore (MAS), Taiwan should allow qualified institutions to issue stablecoins pegged to mainstream currencies such as the US dollar and Euro. By offering a diverse range of currency options, it can not only meet international market demand but also assist Taiwanese financial institutions in expanding their overseas business.
– Strategy 2: Attract international stablecoin enterprises and capital
By emulating Singapore’s approach to attracting international issuers like Circle and Paxos, Taiwan could create a favorable investment environment and policy incentives through tax adjustments, loosening foreign investment entry thresholds, and simplifying administrative processes. This would encourage global fintech companies to establish operations in Taiwan, rapidly enhancing the market’s vitality and competitiveness.
– Strategy 3: Establish a dedicated regulatory framework and licensing system
Effective regulation is key to protecting investors and maintaining financial stability. The government should promptly formulate a stablecoin licensing system that clearly regulates the reserve ratios, internal control mechanisms, capital adequacy, and information disclosure obligations of issuing institutions. Regular audits and public reporting would further ensure market trust in stablecoins and avoid potential systemic risks.

VI. Future Outlook: Establishing a Leadership Position in Digital Finance in the Asia-Pacific
With robust foreign exchange reserves, advanced ICT technology, and deep participation in international financial markets, Taiwan has the potential to become a regional stablecoin hub.
If it can successfully learn from Singapore’s experience and quickly establish an open and comprehensive regulatory environment while combining the strengths of local financial institutions and international capital, Taiwan could expedite the digitalization of cross-border payments and secure a place in the blockchain and decentralized finance (DeFi) ecosystem.
Importantly, the development of stablecoins and digital finance serves not only large enterprises and financial institutions but could also genuinely improve the remittance challenges faced by residents in remote areas and foreign migrant workers, promoting financial inclusion and social cooperation. This represents an opportunity for Taiwan to balance “financial innovation” and “inclusive values,” thereby achieving a higher level of international competitiveness and social impact.

VII. Conclusion: Using Stablecoins as a Starting Point to Create a New Landscape for Digital Finance in Taiwan
The trend of stablecoins has become a focal point in global financial markets, and how to properly regulate and utilize them is a test of the thinking and action of governments and financial institutions around the world. If Taiwan can seize this trend, learn from Singapore’s regulatory practices regarding G10 currency stablecoins, and adapt them to its local financial ecosystem, it will undoubtedly provide a more efficient and inclusive digital finance experience for the industrial, governmental, academic sectors, and the general public.
Currently, stablecoins are rapidly reshaping the landscape of global financial markets, and they are merely the starting point for entering the digital economy. Although Taiwan has a solid foundation and advantages in fintech, to stand out in this competitive wave, it must accelerate its pace, learn from international successful cases, and formulate dedicated regulatory frameworks.
By opening the issuance of G10 currency pegged stablecoins, providing convenient payment tools and capital turnover means for businesses and the public, attracting international enterprises, establishing a sound regulatory and licensing system, and strengthening inter-agency and international cooperation, Taiwan will have the opportunity to create a stablecoin ecosystem that is both innovative and secure, and compete for greater digital financial influence in the Asia-Pacific and even globally.
In the future, with the application of more diverse blockchain technologies and the popularization of smart contracts, areas such as cross-border finance, decentralized finance, and digital asset trading will continue to evolve. If Taiwan can seize this opportunity and use stablecoins as an entry point, effectively utilizing local and international resources and cooperation, it will undoubtedly secure a foothold in the next phase of global financial competition, creating greater value for the people, enterprises, and financial market, and smoothly advancing into a new era of digital finance.
This article is authored by Guo Maoren, Director of the Blockchain Enthusiasts Association.

Opinion articles present diverse viewpoints and do not represent the stance of “WEB3+.”