Central Bank Governor Yang Jinlong CBDC is not an international competition analyzing three scenarios for digital NT applications with no issuance expectations yet

Central Bank Governor Yang Chin-lung detailed the development plan for digital Taiwan dollars (TWD) in a public speech yesterday (5/7), emphasizing that the promotion of digital currency (CBDC) is not a global competition. Yang Chin-lung will report to the Legislative Yuan’s Finance Committee today, discussing the planning of digital currency issuance and related issues of digital transformation.

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Yang Chin-lung emphasizes that the promotion of digital currency is not a global competition
Three scenarios for testing digital TWD
Interbank transfer of bank deposit tokens
Simultaneous delivery of asset tokens and bank deposit tokens
Special Purpose Digital Money (SPDM)
Central Bank continues to improve payment systems, no plans to issue digital TWD currently
Wholesale CBDC concept verification

Yang Chin-lung pointed out that the promotion of digital currency is not a global competition. Even though some countries have issued or piloted CBDC, their development progress is not as expected. The central bank is currently conducting a test plan for digital TWD and will use tokenization technology to support the tokenization of various assets.

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The Central Bank will conduct three scenario tests to verify the feasibility of digital TWD:
Banks can convert deposits into bank deposit tokens according to customer needs and conduct interbank transfers, using wholesale CBDC as clearing assets.
Targeting securities-type tokens (Security Token Offering, STO) issued by financial institutions, conduct simultaneous delivery of bank deposit tokens and securities tokens, and use wholesale CBDC for clearing.
Currently, government bidding units still use paper and manual operations to collect bid bonds from bidding vendors. In the future, if a special purpose token is used for processing, it can not only improve operational efficiency but also automate processes through smart contracts, further enhancing convenience and security.

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Although the central bank currently has no timetable for issuing CBDC, during the continuous research and testing process, it has already improved the efficiency of payment systems and innovative applications. For example, the developed prototype platform for retail payment CBDC can already support the financial operations of digital vouchers, and the number of transactions per second (TPS) has increased to 20,000.

The central bank is planning the conceptual verification of wholesale CBDC, using wholesale CBDC as clearing assets for asset tokenization and combining the functionality of bank deposit tokens to jointly build the future digital currency system.

(Taiwan Central Bank Digital Currency Progress Summary | What are the benefits and risks of CBDC? What is the progress of the tests?
)

Taiwan
Central Bank
Yang Chin-lung

Further reading
Taiwanese have too much idle money! The Central Bank proposes three solutions for excess savings. Can they invest in Bitcoin ETFs?
Taiwan Central Bank Governor Yang Chin-lung reports on CBDC test progress: System completed ahead of schedule, bank deposits can be converted, and small-scale cross-border remittances for migrant workers.