Taiwan's central bank has completed a feasibility study of the wholesale central bank digital currency (CBDC) and continues to consider its introduction. The central bank is seeking input from businesses and academics and will continue working on the design of the platform, Deputy Governor Mei-lie Chu said. saying on December 7th.
In a long speech at an event for bankers, Chu described what he called Banking 4.0, or “services integrated into customers' daily lives,” including the integration of artificial intelligence and advanced digital and mobile technology into banking. He dedicated about half of his presentation to CBDC.
Chu referred to the Bank for International Settlements' research and said he saw the advantages of CBDCs and the tokenization of real-world assets. Besides:
“A central bank currency for clearing purposes can serve as an operational basis for tokenization.”
Chu mentioned unified accounting technology in particular. A unified ledger, as the name implies, uses a single ledger in a “partitioned data environment” to achieve interoperability between systems.
Related: Taiwan Financial Supervision Commission grants first securitized token license
According to the CBDC Tracker website, Taiwan began CBDC research in 2020. It is further along in developing a retail CBDC and has already tested it in a pilot project with consumers and five commercial banks.
from today #fintech The summary includes the Palau Ministry of Finance in its stablecoin proof of concept and the Taiwan central bank in its wholesale version. #CBDC feasibility study and the Basel Committee gave the go-ahead for permissionless blockchain-based cryptocurrencies. https://t.co/sLIX5ZBXg2 pic.twitter.com/8qTY4QJqCH
-John Kiff (@Kiffmeister) December 8, 2023
Bank disintermediation and interoperability with other payment systems were outstanding issues in Taiwan's CBDC research, Chu said. The central bank is taking a “prudent” approach to further developing a CBDC without a timetable for making a decision, Chu added.
Additionally, Taiwan's Fubon Bank has participated with Ripple and the Hong Kong Monetary Authority in a reverse mortgage pilot project using Hong Kong's e-HKD CBDC. It has also integrated China's digital yuan, also known as e-CNY, into its platform.
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