Taiwan’s central bank has finalized a feasibility study of a wholesale Central Bank Digital Currency (CBDC). Announced on December 7 by Deputy Governor Mei-lie Chu, this study marks a notable progression in Taiwan’s digital currency endeavors. The central bank is now seeking feedback from businesses and academics and will continue working on platform design.
CBDC and Banking 4.0
In a presentation to bankers, Chu described the concept of Banking 4.0, highlighting the integration of AI and advanced mobile and digital technology into banking. She dedicated a significant portion of her talk to the CBDC, aligning it with Taiwan’s vision for an innovative financial future.
Unified ledger technology and interoperability
The study emphasized the use of unified ledger technology to achieve interoperability among systems in a partitioned data environment. This approach aims to streamline transactions and enhance the efficiency of digital currency operations.
Taiwan’s progressive stance on CBDCs
Taiwan began its CBDC research in 2020 and has already tested a retail version of the CBDC in a pilot project with consumers and five commercial banks. These steps indicate Taiwan’s commitment to exploring the potential of digital currencies in both wholesale and retail banking sectors.
