Taiwan announced that it has developed a prototype platform for a potential central bank digital currency (CBDC) and plans to hold multiple public hearings and forums next year to further study and refine the initiative.
Taiwan Develops CBDC Prototype Platform, Plans Public Hearings for 2025
This was announced by Central Bank Governor Chin-Long Yang, according to the semi-official Central News Agency.
Chairman Yang emphasized that the creation of a digital currency is not a race between nations and that the central bank has not set a fixed timeline for the issuance of CBDC.
This Wednesday, Taiwan's parliament is scheduled to present a detailed report on the progress of CBDC development at the Legislative Yuan, as confirmed by the office of the chairman of the parliament's finance committee.
The central bank's report outlines the development of a CBDC prototype platform with a two-tier issuance structure. It is stated that in the first phase, CBDC is interest-free and wallets are available in both anonymous and registered forms.
On the retail front, the prototype platform has an impressive transaction speed of 20,000 transactions per second. In addition, the central bank plans to develop CBDC for wholesale use and potentially serve as an exchange asset for asset tokenization.
Taiwan began researching CBDCs in 2019 and has since completed two testing phases. Governor Yang stated that the central bank is taking a cautious approach towards a potential CBDC issuance.
The report explains that cryptocurrencies and stablecoins are not included in the CBDC research because these assets operate separately from the digital currency system.
Taiwan's crypto industry remains largely unregulated, with the financial regulator requiring compliance with anti-money laundering (AML) laws for crypto service providers.
*This is not investment advice.