Bank Of Taiwan Working On CBDC But No Rollout Timeline Yet

According to Yang Chin-long, Governor of Taiwan’s central bank, the country is working on a CBDC. Also, the country will carry out a pilot test for the CBDC soon.
However, the Governor noted that the timeline for a public rollout is not ready. The country joins other countries in Asia working on developing a central bank digital currency.
For over two years, the BoT has researched wholesale and retail CBDC. The research aimed to identify various cases for its CBDC prototype.
Bank Of Taiwan (BoT) Research On CBDC
Atlantic Council Research noted that the bank would have completed its technical testing by September. Meanwhile, the BoT concluded its feasibility study on digital payments in June 2020.
The BoT is done with the feasibility study and is moving to the technical aspect. Meanwhile, Atlantic Council Research highlights the result and decision of the bank after the study.
According to Atlantic Council Research, the BoT noted that it is shifting its exploration to retail applications. Also, it wants to carry out its CBDC research in stages.
First, it would start with a retail CBDC before moving to a wholesale CBDC. However, Yang said the BoT would have to overcome obstacles before adopting CBDC for payment.
Furthermore, the first obstacle would be to garner public support for digital currency. The next would be to refine its platform’s design and also adopt stable technologies.
In addition, another possible obstacle would be the issue of regulation. As a result, it becomes imperative for the BoT to formulate legal frameworks for operation.
Citizens Of Taiwan Prefer Cash Over Debit And Credit Cards
Yang believes this will take around two years before the central bank will achieve this. Afterwards, it would have to carry out another evaluation.
According to the Governor, the country’s population prefers to use cash for payment. Despite introducing debit and credit cards, most people have refused to leave cash.
“We have to look towards the future. Most persons would be using mobile phones then. A CBDC would be added advantage to them. The general-purpose CDBC experiment would focus on retail usage. This will bring it closer to people’s daily lives,” he added.
In other news, Markus Brunnermeier, an adviser to the Bank of International Settlements, made a statement recently. He noted that some countries are afraid the digital economy would favour “dollarization.”
These countries are fighting to introduce CBDCs. They believe this would defend their national currencies against foreign ones,” Brunnermeier added.
Meanwhile, Brunnermeier noted that three CBDCs would become dominant globally. They include China’s renminbi, the U.S. dollar, and the Euro.
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