Digital Taiwan Dollar Survey: 45% are worried about leaving transaction records
As the issue of digital assets gradually comes into public view, the International Monetary Fund (IMF) report pointed out that more than 100 countries around the world are studying the issuance of central bank digital currency (Central Bank Digital Currency, CBDC). The Taiwan Central Bank has been studying the possibility of a "digital New Taiwan Dollar" since 2019, and recently announced the results of an outsourcing questionnaire.
The so-called digital New Taiwan Dollar is actually a currency that is paid in electronic form and has the same value as New Taiwan Dollar banknotes and coins.
At present, Japan, the Eurozone and the United Kingdom are still in the concept verification or prototype construction stage, while China and Thailand have entered the pilot stage.
Take China's digital renminbi as an example. Since 2019, China has successively launched pilot tests in Shenzhen, Suzhou, Chengdu and the 2022 Winter Olympics. China Construction Bank has added a "digital RMB wallet" function to the mobile banking client it developed. Users can directly apply for a digital RMB wallet to perform functions such as payment, collection, scanning, and transfer.
The usage method is similar to general mobile payment. Just turn on the camera and scan the QRCode to make payment. Swipe up on the main interface to pay and swipe down to receive payment. Users can also exchange cash for digital RMB.
Central Bank Digital NT Survey Results
Taiwan’s central bank has completed a two-stage research experiment on the digital New Taiwan Dollar and is currently in the prototype construction stage. The central bank will conduct an outsourced questionnaire survey in April 2023 and complete it in April 2024. The survey targets include the general public, industry financial institutions, payment companies, virtual asset companies, government agencies and relevant experts in academia.
What do people think?
According to a central bank report, the general public (people, shops, vendors) have low awareness of the digital New Taiwan Dollar, but if their awareness and understanding can be improved, their willingness to use it will increase significantly.
At present, 73.8% of the respondents said that they "use both cash and non-cash", while 25% of the respondents "only use cash" due to habit or preference.
45.2% of the people are worried that digital Taiwan dollars will leave transaction records. However, if there is international information security certification, or the government will only access information when it is legal and to track down illegal activities, more than 70% of the people think this can be alleviated. its worries.
What do industries and experts think?
In terms of financial institutions, payment companies, and virtual asset companies, although their awareness is higher than that of the general public, more than 70% of grassroots financial institutions are concerned about the possible impact of the digital New Taiwan Dollar, especially the possible weakening of the role of financial intermediaries, leading to Rising capital costs may increase liquidity risks.
However, if there is a viable business model or supporting measures, these concerns may be reduced.
As for the design of the digital New Taiwan Dollar currently planned by the central bank, including no interest payment in the initial stage but retaining the interest-bearing function, and setting different upper limits on wallet amounts based on the level of identity verification, most industry players think it is acceptable.
What do government agencies think?
Most government agencies believe that the introduction of the digital New Taiwan Dollar will be a positive benefit to their specialized businesses.
More than half of the respondents from government agencies believe that foreigners can be allowed to apply for digital New Taiwan dollar wallets when visiting Taiwan, and supporting measures can be put in place, such as identifying their status as foreigners, restricting their use within the country, and setting relatively The amount limit is artificially low for locals to prevent foreigners from using bearer wallets to engage in illegal activities such as money laundering or fraud.
Is there any chance that Taiwan will issue a digital New Taiwan Dollar?
The central bank stated that it will review and revise the preliminary structure and design of the digital New Taiwan Dollar based on the results of the outsourced questionnaire survey, and will hold several public hearings, briefings or forums to conduct more extensive and in-depth exchanges and communication with stakeholders to improve Public awareness of the digital New Taiwan Dollar.
At the same time, the central bank will continue to collect information on the legal amendments and developments regarding the digital New Taiwan Dollar in major international countries, discuss the relevant legal framework, and then review and evaluate whether to implement a pilot program. The central bank emphasized that if it decides to issue a digital New Taiwan Dollar in the future, it will be implemented in stages. At the same time, it will evaluate the most appropriate introduction time based on the maturity of international technology and the actual needs of the public.
In addition, since remote areas or disadvantaged groups still have a higher proportion of payments in cash, when implementing the digital New Taiwan Dollar, the issuance of cash will still be retained to take into account the needs of the market and the public.
As for some people's concerns about privacy and the use of personal data, some scholars have suggested that technologies such as multi-factor authentication (MFA), zero trust mechanism (Zero Trust), and digital signatures can be used to strengthen information security. For privacy protection, it is recommended to use zero-knowledge proof (ZKP) and differential privacy technology (Differential Privacy).
The central bank also stated that it will continue to study the data management system, clear data usage scope, as well as comprehensive privacy protection mechanisms and information security technology enhancements to enhance public trust and reduce doubts.
The research and promotion of the digital New Taiwan Dollar is an important measure taken by the Taiwan Central Bank to adapt to the development of the times. Through extensive surveys and exchanges, we can better understand the needs and concerns of the public and the industry. As for whether and when digital New Taiwan Dollars will be issued in the future, it is worth continuing to observe.
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