- Taiwan c.bank says that launching a digital currency will be “large and complex” and it will hold a public hearing on the matter next year.
- While digital currencies can provide an alternative to physical cash, they will also likely spark protests over possible government snooping.
OUR TAKE
A study released in March showed that a total of 134 countries, representing 98% of the global economy, are exploring digital versions of their national currencies, with more than half of them in advanced development, pilot or start-up stages.
–Zora Lin, BTW reporter
What happened
Taiwan c.bank says it has no timetable for launching a digital currency on Sunday, warning that the process will be “large and complex,” but it will hold public hearings on the matter next year to spread knowledge.
Taiwan c.bank has been piloting a government-run digital currency that allows people to use a digital wallet to make payments without using a debit or credit card.
“Although the central bank currently has no timetable for issuing a central bank digital currency, in the process of continuous research and experimentation, it is already improving the processing efficiency and innovative applications of the payment system,” bank says in a report to Parliament.
Before taking questions from lawmakers on Monday, central bank governor Yang Jinlong says given that the launch of the yuan will affect many people, there is a need for extensive communication on it, public hearings and forums will be held next year to raise awareness about the currency.
Also read: Singapore ups the risk factor for cryptocurrency exchanges
Also read: Exploring the advantages of digital banking platforms
Why it’s important
Taiwan’s central bank is conducting a pilot for a government-run digital currency, indicating that they are actively exploring and experimenting with new payment system technologies.
Although the central bank is actively promoting the research and pilot of digital currencies, they also warn that it is a “large and complex” project that will take a long time and deliberate consideration.
While digital currencies can bring new payment capabilities and provide an alternative to physical cash, they may also spark concerns and protests within some countries and internationally over privacy and the possibility of government regulation. Digital currency adoption faces technical, social, and policy challenges.
