Taiwan's Strategic Approach to CBDC: Enhancing Payment Efficiency and Innovation"

Taiwan is proceeding cautiously with the development of its CBDC, aiming to improve payment efficiency and foster innovation in its financial system. Yang Jinlong, President of Taiwan's Central Bank, has emphasized the importance of stable development over being the first to issue a CBDC. This approach follows experiences from other countries where CBDC implementations have not yielded expected results.

Taiwan's Central Bank has conducted experiments in three different environments to enhance domestic payment efficiency and foster innovation. While there is no specific timetable for the issuance of a CBDC, efforts to improve the payment system and innovate are ongoing.

A significant development includes a CBDC prototype platform designed for retail payments. According to Yang, this platform can already support the operation of digital coupon transactions, with transaction processing speeds reaching 20,000 transactions per second (TPS).

Additionally, a proof-of-concept for wholesale CBDC is in progress. This initiative combines CBDC with bank deposit tokens to establish a future digital currency system. Its goal is to function as a liquidation asset for asset tokenization.
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