Taiwan’s Central Bank Takes a Cautious Approach to CBDC Development
In a recent statement, the President of Taiwan’s Central Bank, Yang Chin-long, emphasized that the country is not rushing to issue a central bank digital currency (CBDC). He stated that CBDCs should not be seen as an international competition, and instead, the bank will proceed slowly by conducting experiments with the digital Taiwan new dollar.
Chin-long pointed to examples of countries that have already issued CBDCs or conducted pilots, noting that these projects have not met expectations. He believes that CBDC promotion is a complex and time-consuming process that requires careful consideration. To ensure the successful implementation of digital payment policies, the central bank will promote CBDC adoption steadily.
Last December, the Deputy Governor of Taiwan’s central bank, Chu Mei-lie, announced that a technical feasibility study for a wholesale CBDC had been completed. Plans for further pilots of a retail or “universal” CBDC were also outlined. However, there is currently no specific timetable for CBDC issuance.
The central bank is actively researching and experimenting with CBDCs to improve payment system efficiency and explore innovative applications. It plans to conduct surveys across the ecosystem and is collaborating with international organizations such as the Bank for International Settlements (BIS) and Swift.
In addition to CBDC development, Taiwan’s Financial Supervisory Commission (FSC) has introduced new guidelines for Virtual Asset Service Providers (VASPs) to enhance the protection of cryptocurrency users in the country.
Overall, Taiwan’s central bank is taking a cautious and measured approach to CBDC development, prioritizing thorough research and experimentation to ensure the successful implementation of digital payment policies.
