Central Bank Governor Yang Chin-lung detailed the development plan for digital NT in a public speech yesterday (5/7), emphasizing that the promotion of digital currency (CBDC) is not a competition among nations. Today, Yang Chin-lung will report to the Legislative Yuan Finance Committee on the planning of digital currency issuance and related issues of digital transformation.
Contents
Toggle
Yang Chin-lung emphasizes that the promotion of digital currency is not an international competition
Three scenarios for testing digital NT
Interbank transfer of bank deposit tokens
Simultaneous delivery of payment tokens and security tokens
Special Purpose Digital Money (Special Purpose Digital Money)
Central bank continues to improve payment systems, no plans for digital NT issuance at present
Concept verification of wholesale CBDC
Yang Chin-lung pointed out that the promotion of digital currency is not an international competition. Although some countries have already issued or pilot CBDC, the development situation is not as expected. The central bank is also conducting a test plan for digital NT and will use tokenization technology to support the tokenization development of various assets.
(
Central Bank raises interest rates by half a point, Yang Chin-lung compares Bitcoin: It’s like a roller coaster, fasten your seat belt
)
Ad – The text continues below, please scroll down
The central bank will conduct tests in three scenarios to verify the feasibility of digital NT:
Banks can use tokenized shared platforms to convert deposits into deposit tokens according to customer needs, conduct interbank transfers, and use wholesale CBDC as clearing assets.
Targeting securities-type tokens (Security Token Offering, STO) issued by financial institutions, synchronous delivery of payment tokens and deposit tokens, and settlement through wholesale CBDC.
The government’s bidding unit currently collects bid deposits from bidding companies in paper and manual operations. If a special purpose token is used for processing in the future, not only can operational efficiency be improved, but the process can also be automated through smart contracts to further enhance convenience and security.
(
Industry opinion: The importance of stablecoin regulation, the future of TWD stablecoin
)
Yang Chin-lung stated that although there is currently no timetable for the central bank to issue CBDC, during the continuous research and testing process, it has improved the efficiency of payment systems and innovative applications. For example, the developed prototype platform for retail payment CBDC can already support the flow of digital vouchers, and the number of transactions processed per second (TPS) has increased to 20,000.
The central bank is planning the concept verification of wholesale CBDC, using wholesale CBDC as clearing assets for asset tokenization, and combining the functionality of bank deposit tokens to jointly construct the future digital currency system.
(Digital Currency Process in Taiwan | What are the benefits and risks of CBDC? What is the progress of the test?
)
Taiwan
Central Bank
Yang Chin-lung
Related reading
Taiwan has too much idle money! Central Bank proposes three solutions to excess savings, can investment in Bitcoin ETF be an option?
Taiwan Central Bank Governor Yang Chin-lung reports on CBDC test progress: System completed ahead of schedule, bank deposits can be converted, small-scale remittances for migrant workers