Taiwan’s Central Bank Takes a Slow Approach to CBDC, Emphasizes it is Not an International Competition
According to the president of the Central Bank of the Republic of China (Taiwan), Yang Chin-long, Taiwan is not rushing to issue a central bank digital currency (CBDC). He stated that CBDCs are not in competition on an international level and that the central bank will proceed cautiously by conducting experiments with the digital Taiwan new dollar.
Chin-long cited examples of countries that have already issued a CBDC or conducted pilot projects, noting that the outcomes have not met expectations. As a result, he plans to present a special report to the Finance Committee of the Legislative Yuan regarding the planning of digital currency issuance.
Chin-long believes that promoting CBDCs is a complex and lengthy process that requires careful consideration. He emphasized that the central bank will gradually promote its adoption to ensure the successful implementation of digital payment policies.
While the central bank of Taiwan completed a technical feasibility study for a wholesale CBDC last year, there is currently no set timetable for its issuance. The bank is focused on continuous research and experimentation to improve the efficiency and innovation of the payment system.
Additionally, the central bank plans to conduct surveys within the ecosystem to gather insights on CBDCs. It is also in communication with the Bank for International Settlements (BIS) and Swift for further collaboration.
In other news, Taiwan’s Financial Supervisory Commission (FSC) recently introduced new guidelines for Virtual Asset Service Providers (VASPs) to enhance the protection of cryptocurrency users in the country.