The Central Bank of the Republic of China is investigating how to use special-purpose tokens to speed up government bids. Smart contracts could also make bids and performance bonds more efficient.
Yang Chin-long, President of the Central Bank, stressed that creating a central bank digital currency (CBDC) is not a race. Steady progress is more important than quick progress.
A July 7 report by UDN said that Yang said being the first to start a CBDC doesn’t mean it will be successful. It points to the poor results in countries that have already issued or tested digital currencies.
Central Bank’s Digital Dollar Plans
Yang explained the central bank’s plans for a digital New Taiwan dollar in a report he made on June 7 and gave to the Finance Committee of the Legislative Yuan on June 10. He talked about projects that are still going on in three different situations.
The goal is to make domestic payments more efficient and encourage new ideas. There is no set date for when a CBDC will be issued, but work is still being done to improve the banking system and add new features.
The creation of a CBDC prototype tool for retail payments is a significant step forward. Yang said that this platform can handle digital coupon cash flow operations and process up to 20,000 deals per second.
The central bank is also working on a proof-of-concept for a trade CBDC. The goal of this project is to combine CBDC with bank account tokens to create a future digital currency system. CBDC can be used as an asset for asset tokenization.
The Central Bank of the Republic of China will use tokenization technology to turn market central bank and commercial bank currency into digital currencies, allowing for the use of different asset tokens. To reach these goals, the central bank is working with participating banks to build a common platform for tokenization and perform proofs of concept.
According to the story, this platform will be tested in three situations: sending bank deposit tokens between banks, sending asset tokens simultaneously, and using digital funds for specific purposes.
President Yang Chin-long said that Taiwan is being careful about releasing a central bank digital currency (CBDC) so that it can meet the needs of people who want to use digital payments. It also aligns with the government’s digital policy goals, which will have major advantages.
In March, the Financial Supervisory Commission said they would be putting forward a new set of rules for digital assets in Taiwan by September 2024. This project aims to make rules for digital asset markets work better and protect investors.
