Taiwan’s Central Bank Completes Feasibility Study of Wholesale CBDC
The Central Bank of Taiwan has reported that it has completed conducting a study regarding the issuance and impact of wholesale CBDCs. The officials of the government institutions reported about CBDC research in addition to alternative payment modernization initiatives.
Parameters of Wholesale CBDC
On this front, the Central Bank also compiled a report to record the feasibility parameters of a wholesale digital currency CBDC. The purpose of the publication is to collect feedback from business community and academic circles.
She delivered a detailed briefing at an event attended by the local banking firms. She introduced the new technology as Banking 4.0 and also titled it as services used by consumers in their daily lives.
She also talked about AI, mobile, and digital technology protocols added to the banking services. At the same time, she mentioned that researchers have assigned 50% of work-focus on CBDCs.
Bank for International Settlements CBDC Research
Talking about the wholesale CBDC research program, Chu referenced the CBDC research report published by the Bank for International Settlements. She listed advantages of CBDCs and tokenization process of RWAs or real world assets.
She stated that CBDCs can serve as operational basis for tokenization. At the same time, she talked about Unified Ledger Technology. A UL is a single ledger is a divided data ecosystem to bring interoperability among isolated networks.
A CBDC tracker site claims that government of Taiwan started working on a wholesale CBDC project in 2020. The website noted that the government is also working on retail CBDC and initiated a pilot project involving consumers and 5 commercial banks.
Chu noted that two major issues facing the CBDC program were interoperability and disintermediation in regards to other payment systems. These networks are unresolved issues in the CBDC research project.
Reverse Mortgage Test Project
The Central banking enterprise also claimed that the institution was on a tactful route to ensure the future development of CBDC without adding any timelines. Fubon Bank, a private banking firm hailing from Taiwan is working with Ripple and the Monetary Authority of Hong Kong on a reverse mortgage test project. This project is based on the digital legal tender of Hong Kong.
At the same time, it has also utilized the digital yuan of China which is called e-CNY on the CBDC payments system. On the other hand, the Financial Supervisory Commission or FSC has issued the first-ever Security Token Offering license.
The licensed firm will be able to issue STO bonds with an activation date of 6 months. These bonds will generate an annual yield of 3.5%. Furthermore, the initiation amount for the bond is set at 30 million new Taiwan dollars or $930K.
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