Taiwan Concludes Technical Study on Wholesale CBDC: Central Bank Official

• Taiwan's Central Bank Concludes Technical Examination of a Wholesale CBDC
• Moving towards Public, Government, and Industry Feedback
• Global Consideration of CBDCs
• CBDCs as a Platform for Tokenization
• Potential Risks
• Regulatory Measures in Response to Tokenization

Taiwan's Central Bank Concludes Technical Examination of a Wholesale CBDC

The Central Bank of the Republic of China, Taiwan's central banking system, has recently concluded a technical assessment of a wholesale central bank digital currency (CBDC), as reported by Deputy Governor Chu Mei-lie.

Moving towards Public, Government, and Industry Feedback

In a speech delivered on December 7, Chu articulated that the banking institution's next step involves conducting comprehensive surveys. The aim is to gather feedback from a diverse range of stakeholders including the public, government departments, industry experts, and academia. This feedback will be instrumental in the enhancement of the design of the proposed CBDC platform.

Global Consideration of CBDCs

Globally, jurisdictions are examining the potential of CBDCs in the context of interbank and retail payments. This increased interest has been fueled by the endorsement from the international group of central banks, the Bank for International Settlements.

CBDCs as a Platform for Tokenization

Chu emphasizes the potential role of CBDCs in the tokenization process. As traditional financial organizations are increasingly exploring the digitization of real-world assets, CBDCs can provide the operational foundation required for such tokenization.

Potential Risks

However, the path towards digital currency is not without its risks. Chu cautions that these advancements could pose substantial threats to financial stability, consumer protection, anti-money laundering protocols, and overall market integrity.

Regulatory Measures in Response to Tokenization

Chu stresses the need for financial supervising bodies to contemplate relevant regulatory measures in response to the growing trend of tokenization.

Edited by Jonathan Stoker