Central Bank President Yang Jinlong detailed the development plan for the digital New Taiwan Dollar in a public speech yesterday (5/7) and emphasized that the promotion of digital currency (CBDC) is not an international competition. Yang Jinlong will go to the Finance Committee of the Legislative Yuan today to give a special report to discuss the planning of digital currency issuance and issues related to digital transformation.
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.
(The central bank raised interest rates by half a point, Yang Jinlong mentioned Bitcoin in the briefing: It is like a roller coaster, you must fasten your seat belt)
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:
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.
Synchronous delivery of asset tokens
Using the Security Token Offering (STO) issued by financial institutions as the target, the deposit tokens are delivered simultaneously with the deposit tokens, and are cleared through wholesale CBDC.
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.
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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 issuance of 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 Process Compilation | What are the benefits and risks of CBDC? At what stage is the trial progress?)
This article Central Bank President Yang Jinlong: CBDC is not an international competition, analyzing three digital Taiwan dollar application scenarios, and there is no expectation of issuance first appeared on Chain News ABMedia.
