The recently completed Taiwan CBDC project involved Taiwan’s central bank exploring a wholesale central bank digital currency and its use cases in daily life.
Taiwan’s central bank has recently completed a study on central bank digital currencies (CBDCs). The Taiwan CBDC project explored wholesale CBDC’s applications and potential uses. With the CBDC research, the central bank is deliberating on a likely digital currency for Taiwan in the future. For now, Taiwan’s central bank is in talks with banks and academics for their feedback.
Mei-lie Chu, the Deputy Governor of Taiwan’s central bank, recently discussed the details of the Taiwan CBDC study. She spoke at length in her long and detailed speech about CBDCs and the future of banks with emerging technologies. She said, “A central bank currency with clearing finality can serve as the operational basis for tokenization,” while mentioning the use case of a unified ledger for interoperability.
Chu mentioned they did not have a timeline yet for the CBDC. On the other hand, the bank was looking into certain issues with a prudent approach, said the official. The research for CBDCs in Taiwan commenced back in 2020. Taiwan has also tested a retail CBDC pilot project in the last three years.
Meanwhile, the Bank for International Settlements (BIS) has been an active proponent of CBDCs. The BIS has conducted numerous research projects and worked with central banks worldwide. Days back, it released a CBDC report highlighting the details of a private digital currency. The entire exercise for a private currency is called Project Tourbillon by the BIS.
On the regulatory front, the parliament in Taiwan also recently saw the first reading of a digital assets bill. With the bill, Taiwan has proposed to move forward to a transparent crypto regulatory regime.
Follow Millionero’s blog for the latest news from the world of crypto!