Yang Jinlong emphasizes that digital currency promotes non-international competition

Yang Jinlong pointed out that the promotion of digital currency is not an international competition. Even though some countries have issued or piloted CBDC, their development is not as expected. The central bank's pilot plan for the digital New Taiwan Dollar is also underway and will apply tokenization technology to support the tokenization development of various assets.

Digital New Taiwan Dollar Three Scenario Experiments

The central bank will conduct experiments in three scenarios to verify the feasibility of the digital Taiwan dollar:

1. Inter-bank transfer of bank deposit tokens

Banks can use the tokenized common platform to convert deposits into deposit tokens based on customer needs, conduct inter-bank transfers, and use wholesale CBDC as a clearing asset.

2. Synchronous delivery of asset tokens

Using the Security Token Offering (STO) issued by financial institutions as the subject, the deposit tokens are delivered simultaneously with the deposit tokens, and are cleared through the wholesale CBDC.

3. Special Purpose Digital Money

Currently, government tendering units still use paper-based and manual processes to collect deposits from bidders. If they switch to special-purpose tokens in the future, it will not only improve operational efficiency, but also further improve convenience through smart contract automation processes. and security.

Industry Opinions: The Importance of Stablecoin Supervision, and the Future of Taiwan Dollar Stablecoins

The central bank continues to improve the payment system and has plans for the issuance of multi-digit New Taiwan Dollars.

Yang Jinlong said that although the central bank currently has no timetable for issuing CBDC, it is already improving the processing efficiency and innovative applications of the payment system during continued research and testing. For example, the prototype retail payment CBDC platform developed can already support the cash flow operation of digital coupons, and the number of transactions per second (TPS) has been increased to 20,000.

Wholesale CBDC Proof of Concept

The central bank is planning a proof-of-concept for wholesale CBDC, using wholesale CBDC as a liquidation asset for asset tokenization and combining it with the bank deposit token function to jointly build a future digital currency system.

Taiwan Central Bank’s Digital Currency Progress Review | What are the benefits and risks of CBDC? At what stage is the trial progress?

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  • This article is reprinted with permission from: Lian News