Key takeaways:
Yang Chin-long stated that the central bank is more concerned with steady growth than rapid advancement and that the creation of a CBDC is not a competition.
Yang presented the central bank’s ideas for a digital New Taiwan dollar to the Legislative Yuan’s Finance Committee on Wednesday, June 10, after releasing a report on June 7.
Yang Chin-long, the president of the Central Bank of the Republic of China, stated that the central bank is more concerned with steady growth than rapid advancement and that the creation of a central bank digital currency (CBDC) is not a competition.
According to a July 7 news report by UDN, Yang claimed that being the first to launch a CBDC does not ensure success because nations that have already issued or tested CBDCs have not experienced the expected benefits.
Yang presented the central bank’s ideas for a digital New Taiwan dollar to the Legislative Yuan’s Finance Committee on Wednesday, June 10, after releasing a report on June 7.
Yang stated that in order to improve domestic payment innovation and efficiency, the central bank is testing three different scenarios. While a timeline for the issuance of a CBDC is unknown, continual efforts are being made to increase the processing efficiency and creative applications of the payment system.
The CBDC prototype platform, intended for retail payments, is one notable development. Yang claims that this technology can already handle the digital coupon cash flow operation, processing transactions at a rate of up to 20,000 per second.
A proof-of-concept for a wholesale CBDC is also being developed. Through this endeavor, a future digital currency system will be built using bank deposit tokens and CBDC. Its purpose is to serve as an asset tokenization liquidation asset.
Tokenization technology will be used by the central bank to digitally change wholesale and commercial bank currencies while supporting a range of asset tokens. In order to achieve its goals, Taiwan’s central bank is working with participating institutions to develop a unified tokenization platform and undertaking proofs-of-concept.
The research states that three scenarios will be used to test this platform: simultaneous delivery of asset tokens, interbank transfer of bank deposit tokens, and special-purpose digital money.
Yang reaffirmed that Taiwan’s cautious approach to issuing a CBDC is meant to satisfy the demands of the people for digital payments and be in line with the objectives of government digital policy, guaranteeing significant advantages.
The Financial Supervisory Commission declared in March that it would put out a fresh proposal for Taiwan’s digital asset laws in September 2024. It seeks to ensure investor safety and develop more efficient laws for digital asset markets.
