Taiwan’s central bank said today it may begin testing a central bank digital currency prototype later this year.
The CBDC prototype will not use blockchain or smart contracts. Rather, it will be implemented through Taiwan’s digital ministry’s upcoming government “digital voucher” system.
Yang Jin-long, governor of Taiwan’s central bank, briefing On Wednesday, the central bank announced in parliament that it plans to work with the Digital Ministry to develop a CBDC prototype that could be integrated into the ministry’s digital voucher platform. The Taiwanese government has previously issued stimulus vouchers to spur spending.
Yang said that in the future, government agencies could issue digital vouchers through the system. The digital ministry would oversee the distribution of the vouchers, and the central bank would manage the subsequent payment and settlement operations after users redeem the digital vouchers from their wallets.
While Yang explained that there is no fixed timeline for a CBDC pilot or issuance, another central bank official said in response to lawmakers’ questions that a CBDC prototype test for a digital voucher system could begin later this year or early next year.
The digital voucher system could begin testing in August and go live in October, according to current plans, local newspaper United Daily News reported. Reported On Wednesday, it cited industry sources familiar with the matter, one of whom said the digital voucher system could be considered a “warm-up” for a CBDC pilot, as CBDC issuance could follow a similar path to digital vouchers.
Special cryptocurrency bill under consideration
Also attending Wednesday’s briefing was Jin-Lung Peng, chairman of the Financial Supervisory Commission. said The regulator is reportedly reviewing a special bill on cryptocurrencies that will be submitted to Taiwan’s top administrative body, the Executive Yuan, in June 2025.
In Taiwan, the cryptocurrency industry remains largely unregulated, with the FSC requiring cryptocurrency service providers to comply with anti-money laundering laws. Last month, the local cryptocurrency sector was officially Establish an industry association Establish your own oversight rules in accordance with government guidelines.
In May, the Ministry of Justice Proposed Amendment Under existing AML laws, domestic and foreign cryptocurrency companies wishing to operate in Taiwan are required to register for AML compliance. Failure to do so may result in imprisonment of up to two years.
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