Hey folks.
Yang Chin Long, the President of Central Bank of Republic of China stated that developing a central bank digital currency (CBDC) isn't a competition and that the bank is focused on on progress that is steady rather than speed.
He further stated that it doesn't guarantee success to be the first bank to introduce CBDC, as countries that have already introduced or tested CBDs have not seen outcomes that were desired, a news report by UDN shared on July 7.
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 in order to increase efficiency and innovation in domestic payment, the central bank is conducting experiments in three scenarios. Although there is no schedule for issuing a CBDC, there is continuous work being done to enhance the payment system's creative applications and processing effectiveness.
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.
Furthermore, a proof-of-concept is in the works for a wholesale CBDC. This drive joins CBDC with bank deposit tokens to make a future digital currency system. The goal of this is to work as a liquidation asset for tokenization of 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.
To promote its objectives, the central bank of Taiwan is running proof-of-concept and cooperating with participating banks build a common platform for tokenization.
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 restated that the careful approach by Taiwan towards the issuance of CBDC is meant to meet the digital payment needs of the public and line up with digital policy goals of the government, making sure considerable benefits.
The Financial Supervisory Commission in March announced that it would suggest a new draft of digital asset regulations for Taiwan in September 2024. The is to create regulations for markets of digital asset that are effective and to make sure investor's safety.
Any thoughts on the topic? Share with us.
Follow @haveyoursay
x.com/itshaveyoursay
Posted Using InLeo Alpha