Taiwan’s central bank recently announced that it has no fixed schedule for launching a central bank digital currency (CBDC). This news comes amidst growing global interest in digital currencies issued by central banks.
While a CBDC timeline remains undetermined, the c.Bank emphasized its ongoing research and experimentation. A report submitted to the Taiwanese parliament outlined plans for a digital New Taiwan Dollar. This digital currency is envisioned to enhance domestic payment efficiency and innovation.
The c.Bank is currently conducting pilot programs in three key areas. Firstly, they are developing a CBDC prototype platform specifically designed for retail transactions. Secondly, the bank is exploring the use of special purpose tokens for government tenders. These tokens could leverage smart contracts to streamline bid submissions and performance bond management. Finally, the c.Bank is investigating potential applications of CBDC for offline payments.
Public education is also a priority for the c.Bank. Public hearings are planned for next year to raise awareness and gather feedback on the potential CBDC. This initiative underscores the bank’s commitment to transparency and public participation in the decision-making process.
The central bank’s cautious approach reflects the complexity of CBDC development. Factors such as financial stability, security, and potential impact on existing financial institutions require careful consideration. While a launch date remains uncertain, Taiwan’s central bank is actively exploring the potential of a digital currency.