Mega Financial Chairman Flags Three Fatal Flaws in Bank-Issued Stablecoins, Sees Little Profit or Advantage

Stablecoins maintain their value through reserves of fiat assets and are commonly used for crypto trading and cross-border payments. Taiwan, however, already has mature domestic payment options and lacks compelling demand. Mega Financial Holding Chairman David Dung said bank brands would struggle to compete with global operators such as Tether. Requiring 100% fiat reserves would also restrict how funds could be deployed and limit profit potential.

At Mega Financial’s annual general meeting on June 18, 2026, Dung reiterated that he could not see an advantage in banks issuing their own stablecoins, although related services such as small-value cross-border remittances could still offer business opportunities. Mega International Commercial Bank disclosed test results on March 10 showing that conventional banks were more cost-effective than stablecoins for remittances exceeding NT$200,000, or about $7,000, because bank fees are capped and customers have room to negotiate.