A groundbreaking development has taken place in Taiwan’s financial industry with the creation of a prototype for a potential central bank digital currency (CBDC), as reported by the Central News Agency on July 7.
As part of Taiwan’s plan, preparations for a potential launch will involve hosting multiple hearings and forums in 2025. Meanwhile, the central bank of Taiwan will continue to evaluate and study the development of a CBDC.
According to a recent research report by Taiwan Central Bank Governor Chin-Long Yang, the creation of a CBDC is not a competition on the international stage. Yang emphasized the need for the institution to establish a specific timeline for issuing a CBDC.
The report also mentioned that the Finance Committee of the Legislative Yuan will invite the president of the Central Bank, Yang Jinlong, to deliver a special report titled “Planning for issuing digital currency and digital transformation of currency” on the eighth day. This report will unveil the institution’s plan for a central bank digital currency.
It is important to note that Tien-mu Huang, chairman of the Financial Supervisory Commission (FSC), recently disclosed that Taiwan is currently considering the possibility of enacting a special law to regulate the cryptocurrency industry. The findings of this analysis are expected to be published in September 2024.
Regarding CBDCs and privacy concerns, ongoing investigations into central bank-issued digital currencies have sparked a heightened focus on these issues. However, the impact of CBDCs on privacy is determined by various factors, including their design, implementation, legal framework, and user awareness.
The laws and regulations governing CBDCs play a significant role in determining their impact on financial privacy. Implementing stringent privacy protection measures can mitigate the risks associated with CBDCs. Conversely, granting governments broad surveillance powers could result in CBDCs being used as a tool for increased monitoring.
Disclaimer: The author and individuals mentioned in this article express their views and opinions for informational purposes only and do not provide financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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