Fintech, stablecoin can help speed up AI supply chains: Industry leaders

Taipei, Aug. 11 (CNA) Financial technology (FinTech), including stablecoins, could help accelerate the movement of funds across global semiconductor and AI supply chains, allowing manufacturers to operate more efficiently, industry leaders said Tuesday.

Speaking at a media briefing in Taipei ahead of the second edition of the Asia FinTech Alliance (AFA) Summit, AFA Chairwoman Jaclyn Tsai (蔡玉玲) said Taiwan is the "heart" of semiconductor and AI server manufacturing, and that faster production must be matched by faster financial transactions.

"We cannot just move goods around quickly. We have to move the money quickly as well," she said, adding that FinTech could improve supply chain efficiency and strengthen the competitiveness of manufacturing economies.

Echoing Tsai, Etron Technology Inc. Chairman Nicky Lu (盧超群) said speed is critical for technology companies operating across different time zones, where banking and settlement hours could delay transactions.

"How quickly can we pay? How quickly can we receive?" Lu said, adding that financial delays could affect production, deliveries, suppliers and customers across several countries when transactions are held up by banking cut-off times.

"In Taiwan, 3:30 in the afternoon is like a cut-off point for everything about semiconductors. We have to wait for the next day," Lu said, referring to the afternoon transaction cut-off observed by many local banks.

He said the financial infrastructure supporting global technology supply chains therefore needs to become faster while maintaining "security, reliability, and resiliency."

Stablecoins

During a Q&A session, Tsai said emerging technologies including AI, blockchain and virtual assets could offer new tools to improve manufacturing and supply chain efficiency.

She said regulatory approaches across Asian economies are also becoming more aligned, creating opportunities for greater interoperability in areas such as stablecoins and cross-border payments.

Stablecoins are digital tokens designed to maintain a stable value, typically by being pegged to a fiat currency such as the U.S. dollar. Taiwan's Legislature passed the Virtual Asset Services Act on June 30, establishing Taiwan's first legal framework governing stablecoin issuance.

Tsai said the framework could allow both Taiwan dollar and foreign currency-backed stablecoins, although there has yet to be a decision on which type would be more widely issued.

Pointing to their potential use in supply chains, Tsai said a Taiwanese company could, for example, receive a U.S. dollar-backed stablecoin from an overseas customer and convert it into a Taiwan dollar-backed stablecoin to pay suppliers, employees and other expenses.

Stablecoin payments, which could help make cross-border transactions faster by providing a "new rail" for settlement alongside traditional payment systems, are "very likely" to become more common as early as next year, not only in Taiwan but also in other countries, she added.

Founded in 2023, AFA brings together FinTech associations from 16 Asian economies, with one association from each, and promotes cross-border collaboration, regulatory dialogue and financial innovation.

The inaugural AFA Awards will be held in Taipei on Sept. 1, followed by FinTechOn 2026 and the second edition of the AFA Summit on Sept. 2-3, with a focus on virtual asset and FinTech regulation, global supply chains, cross-border payments and AI.