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08/07/24
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Central Bank of the Republic of China Prioritizes Steady Progress on CBDC Launch
Taiwanese central bank president Yang Chin-long reportedly said that the development of a central bank digital currency (CBDC) is not about competition, so speed is not prioritized. Ching-long said the apex bank’s focus was on making steady progress, noting that success is not guaranteed by being the first to introduce a CBDC.
The desired results have not been recorded by countries that have already issued or tested CBDCs. The president of the Central Bank of the Republic of China outlined plans for a digital New Taiwan dollar, noting that they have carried out experiments in three scenarios towards enhancing local payment efficiency and innovation.
The central bank is doing its best to ensure the improvement of the processing efficiency of the payment system and innovative applications, despite the absence of a timetable to issue a CBDC.
They have designed a CBDC prototype platform for retail payments featuring transaction processing speeds hitting 200k per second and can support the cash flow operation of digital coupons.
Likewise, they are working on a proof-of-concept for wholesale CBDCs, a combination of CBDC and bank deposit tokens towards constructing a future digital currency system. This is meant to function as a liquidation asset for asset tokenization.
The application of tokenization technology for digital transformation of wholesale central bank currency and commercial bank currency to support several asset tokens is part of the central bank’s plans. Collaboration with participating banks to develop a common platform for tokenization is aimed at furthering its plans.
They will test the common platform in three scenarios, including inter-bank transfer of bank deposit tokens, simultaneous delivery of asset tokens and special-purpose digital money. Yang reemphasized Taiwan’s cautious approach to introducing a CBDC, noting that it is meant to meet the digital payment needs of the public and align with digital policy goals of the government.
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