Taiwan’s Central Bank is taking a deliberate approach towards developing a central bank digital currency (CBDC), emphasizing steady progress over speed.
President Yang Chin-long stated, “Although the bank currently has no timetable for issuing central bank digital currency, in the process of continuous research and experimentation it is already improving the processing efficiency and innovative application of the payment system.”
According to a Reuters report, the Central Bank of Taiwan outlined its plans to enhance domestic payment efficiency and innovation through CBDC experiments. While there’s no set timeline for issuing a digital New Taiwan dollar, the bank is making strides in improving payment system efficiency and exploring innovative applications.
One notable development is a CBDC prototype platform designed for retail payments, capable of handling digital coupon transactions at speeds up to 20,000 transactions per second.
Additionally, the bank is working on a proof-of-concept for a wholesale CBDC that integrates CBDC with bank deposit tokens to facilitate a future digital currency system.
The central bank plans to apply tokenization technology to transform wholesale and commercial bank currency, supporting asset tokens, and collaborate with banks to test inter-bank transfers and asset token deliveries on a common platform.
President Yang reiterated that Taiwan’s cautious approach aims to meet public digital payment needs and align with government digital policy goals, ensuring substantial benefits.
Meanwhile, Taiwan’s Financial Supervisory Commission is set to propose new digital asset regulations in September 2024, aiming for more effective market oversight and investor protection.
This strategic approach reflects Taiwan’s commitment to integrating digital innovations in finance while prioritizing stability and public benefit in its financial ecosystem.
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