Taiwan is on its second phase of retail central bank digital currency (CBDC) research. In September this year, it expects to complete trials of its prototype CBDC in technical simulations after concluding a feasibility study in June 2020.
Reports say the current design is a two-tier system with users able to exchange bank deposits with the new Taiwan dollar digital currency. The CBDC will also be linked to credit and debit cards and will be legal tender. So there’s no age restriction, enabling children to use it.
Local news agency RTI quoted the Chairman of Yushang Bank, Hugan Nanzhou, who said (rough translation), “In the whole financial system there are multiple channels. And we don’t want a single channel, because it will be troublesome if there is a problem with that one channel. So multiple channels must coexist. That’s what the central bank will think as well. I assume that one day, when digital currency comes out, (other) electronic payment services will still exist.”
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