To modernize its payment systems, Taiwan’s Central Bank is methodically working on a central bank digital currency (CBDC) without rushing to set a launch date.
President Yang Chin-long emphasized the importance of a careful approach, stating that while there’s no fixed timetable for issuing a digital New Taiwan dollar, ongoing research and experiments are already enhancing payment efficiency and spurring innovation.
The bank’s deliberate strategy includes developing a prototype CBDC platform tailored for retail transactions, capable of processing up to 20,000 digital coupon transactions per second.
Additionally, a proof-of-concept for a wholesale CBDC is in progress.
This initiative aims to integrate digital currency with bank deposit tokens, paving the way for a future digital currency system.
Tokenization technology is another focus area, with the central bank planning to convert wholesale and commercial bank currencies into digital assets.
Collaborative efforts with banks will test inter-bank transfers and asset token deliveries on a shared platform.
President Yang reassured that this cautious method is designed to address public digital payment needs and align with Taiwan’s broader digital policy objectives, ensuring substantial benefits.
In tandem with these efforts, Taiwan’s Financial Supervisory Commission is preparing new digital asset regulations set to be proposed in September 2024, aiming to enhance market oversight and protect investors.
