According to the Central News Agency, the Central Bank issued a written report on the topic "Planning of Digital Currency Issuance and Digital Transformation of Currency" held by the Legislative Yuan Finance Committee today (8th). The report pointed out that the issuance of central bank digital currency (CBDC) involves a wide range of interests. It is necessary for relevant parties to conduct extensive and prudent communication in advance. It is expected that several public hearings, briefings and forums will be held in 2025, and the legal structure will be discussed at the same time.

The central bank revealed its plans for digital currency in a written report released last weekend. The report points out that the central bank has built a prototype CBDC platform and plans to use a two-tier structure for issuance. No interest will be calculated in the initial stage of issuance, but the interest-bearing function will be retained. The wallet will be divided into bearer and registered wallets; in addition, privacy and personal considerations will be taken into consideration. Data protection, information security management, various retail payment functions, etc.

The central bank began studying CBDC in 2019 and completed the second phase of research and testing. It is currently in the prototype construction stage and is in sync with advanced countries around the world. The agency emphasized that promoting CBDC is not an international competition. Payment in Taiwan is diversified and convenient, so it is more cautious about issuing CBDC. It mainly hopes that the implementation of CBDC can meet the public's digital payment needs and the government's digital policy development goals to achieve substantial benefits.

Related reports: "The Bank for International Settlements cooperates with multiple central banks to complete CBDC cross-border transaction testing using DeFi technology"

According to reports, the central bank stated that it will apply tokenization technology to digitally transform wholesale central bank currency and commercial bank currency to support the development of various asset tokens; the central bank is now planning a proof-of-concept for wholesale CBDC to use wholesale CBDC. As a liquidation asset for asset tokenization, combined with the function of bank deposit tokens, we jointly construct the future digital currency system. However, the central bank has made its stance on digital assets clear, saying that virtual assets such as Bitcoin and stablecoins are not part of the digital currency system.

Related reports: "The Bank for International Settlements and multiple central banks launch "Project Agorá" to explore the tokenization of cross-border payments"

Central Bank President Yang Jinlong went to the Legislative Yuan today to deliver a special report, but the agenda did not go smoothly. Since the agenda of the Finance Committee is "one meeting" on Monday and Wednesday, Monday's holiday will not affect Wednesday's agenda, and the meeting is expected to continue on Wednesday morning.

Source: Central News Agency

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