Taiwan’s central bank is making steady progress in developing a digital New Taiwan dollar （CBDC）. The strategic approach aims to improve payment system efficiency and explore innovative applications, integrating wholesale CBDC with bank deposit tokens.
Points
- Taiwan’s central bank is developing a digital New Taiwan dollar （CBDC）.
- The bank is conducting experiments to improve payment system efficiency.
- A proof-of-concept for wholesale CBDC integrates with bank deposit tokens.
- Taiwan aims to establish a robust digital currency ecosystem supporting asset tokenization.
In a detailed report released before his presentation to the Finance Committee of the Legislative Yuan on June 10, Yang outlined Taiwan’s plans for a digital New Taiwan dollar. The central bank is currently conducting experiments across three scenarios to improve payment system efficiency and explore innovative applications.
Strategic Approach to CBDC
Wholesale CBDC and Tokenization
Alongside retail solutions, Taiwan’s central bank is advancing a proof-of-concept for a wholesale CBDC. This initiative integrates CBDC with bank deposit tokens, aiming to establish a robust digital currency ecosystem that supports asset tokenization and serves as a liquidity asset.
Furthermore, the central bank plans to leverage tokenization technology to transform wholesale central bank currency and commercial bank currency. This approach supports diverse asset tokens and is part of Taiwan’s broader efforts to collaborate with banks on a unified tokenization platform.
Regulatory Landscape
Addressing the regulatory environment, Yang affirmed that Taiwan’s cautious approach aligns with public digital payment needs and government digital policy goals. This strategy aims to ensure substantial benefits while mitigating potential risks associated with digital currency adoption.
In March, Taiwan’s Financial Supervisory Commission announced plans to introduce updated digital asset regulations by September 2024. These regulations aim to enhance market effectiveness and investor protection within the digital asset sector, reflecting Taiwan’s proactive stance on financial innovation.
###解説
– Taiwan’s central bank is strategically advancing the development of a digital New Taiwan dollar （CBDC） to enhance payment system efficiency.
– Integrating wholesale CBDC with bank deposit tokens aims to create a robust digital currency ecosystem supporting asset tokenization.
– The central bank’s cautious approach ensures that public digital payment needs and government digital
policy goals are met while mitigating potential risks associated with digital currency adoption.
– Taiwan’s proactive stance on financial innovation is reflected in its plans to introduce updated digital asset regulations by September 2024.
– Collaboration with banks on a unified tokenization platform aims to support diverse asset tokens and enhance liquidity, paving the way for a comprehensive digital financial ecosystem.