The work on Taiwan’s central bank digital currency (CBDC) started two years ago. Recently, Yang Chin-long, governor of the country’s central bank said that the work is still going on. He further said that it could take two more years for the Central bank to come up with a CBDC.
At a digital currencies forum in Taiwan, Yang also revealed that the Central bank has been conducting a simulation of the use of CBDC in a closed environment. However, the bank has three important tasks to face— an assured system, a legal framework for the CBDC and ultimately winning the public’s confidence.
“We still have to push forward. After all, most of the young people in the future will use mobile phones, so we have to think about the next generation”
People in Taiwan prefer cash, although the central bank has been considering future prospects as well. The central bank has to consider the fact that many youngsters in Taiwan are into technology and it is more unlikely that physical cash will be preferred over a state issued digital currency.
Since the administration wants to have almost no problems after the launch, it is assessing each and every aspect— hence, it is asking for two more years. 105 countries are exploring whether they can also launch a CBDC in the near future. On the other hand, ten countries have already launched central bank digital currencies.