Taiwan central bank delays digital currency

Taiwan’s central bank has opted to delay the launch of its digital currency, citing multiple hurdles that need resolution before any roll-out. This decision reflects the cautious approach the financial institution is taking in what is deemed a critical move for its monetary policy and financial stability.

Originally, the central bank had aimed to pilot its Central Bank Digital Currency (CBDC) earlier next year. However, logistical and regulatory issues have surfaced, prompting a re-evaluation of the timeline. The bank underlined the importance of addressing cybersecurity risks, ensuring robust financial infrastructure, and gaining public acceptance before proceeding further.

For context, consider China’s advanced digital yuan project that has undergone extensive public trials and government support to address similar concerns. Conversely, Taiwan’s strategy appears more conservative, focused on meticulous planning and stakeholder engagement.

While this delay might seem a setback, the central bank reassures that it remains committed to modernizing its financial systems. Public hearings are scheduled next year to better inform and involve the populace about the upcoming digital currency. The bank aims to leverage these hearings to gather insights and foster a secure, reliable, and well-understood framework for the CBDC.

This decision underscores the complexity of transitioning to digital currencies, marked by a careful balance between innovation and prudence, echoing lessons from global peers in digital finance.

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