Taiwan's Central Bank Advances in CBDC Development, Seeks Industry Feedback
Summary:
The Central Bank of Taiwan has completed its preliminary study into the potential of a wholesale Central Bank Digital Currency (CBDC). The bank is seeking industry and academic input as it works on platform design. Mei-lie Chu, the deputy governor, spoke at a conference about 'Banking 4.0', which includes customer-based services using mobile and digital technologies and artificial intelligence. The bank has made significant progress on a retail CBDC, having already tested it in a pilot project. The central bank will approach further development cautiously, without setting a timeline.
The Central Bank of Taiwan has wrapped up a preliminary study into the prospects of a wholesale Central Bank Digital Currency (CBDC), with a view toward its possible implementation. A request for input from industry and academic spheres has been issued as the bank looks into developing its platform's design, as revealed by deputy governor Mei-lie Chu on December 7. Speaking at a bankers' conference, Chu spoke extensively about what she dubbed 'Banking 4.0', referring to a customer-centric approach involving artificial intelligence and state-of-the-art mobile and digital technologies. CBDC was a significant topic of her speech.
Drawing upon research from the Bank for International Settlements, Chu highlighted the benefits of CBDCs and the tokenization of tangible assets. She added that a central bank currency, complete with clearing finality, can underpin tokenization. She specifically singled out the concept of unified ledger technology, which utilizes a solitary ledger within a 'sectionalized data environment' to enable system interoperability. As noted by CBDC Tracker, Taiwan embarked on its CBDC research journey in 2020, and it has significantly progressed in terms of a retail CBDC. A pilot project involving consumers and five commercial banks has already put a retail CBDC to the test.
Chu highlighted the need to resolve bank disintermediation and the interoperability with other payment systems in the context of Taiwan's CBDC research. She stated that the central bank is adopting a 'cautious' stance on further CBDC development, without specifying any decision timeline. Furthermore, Taiwan's Fubon Bank has been actively involved in a reverse mortgage pilot project which utilized Hong Kong's e-HKD CBDC, in collaboration with Ripple and the Hong Kong Monetary Authority. It has also integrated China's e-CNY digital yuan into its operation.
Published At
12/8/2023 9:45:00 PM
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