Taiwan’s central bank has completed testing its new digital currency. The bank will now collect feedback on the trial and attain public support before promoting the new currency. That’s according to a speech from Central Bank President Yang Chin-Long on Wednesday.
In 2020 Taiwan’s central bank started researching the feasibility of implementing a digital currency, including the limits to its technology. On Wednesday, Yang announced the bank completed the second stage of its development plan. In that phase it tested the digital currency with select wholesale merchants and banks.
Yang says the digital currency is a risk-free asset with the potential to fulfill future financial needs. It will be connected to digital wallets accessible to all people and not tied to bank cards. He says after it is implemented, the currency will not be able to accrue interest when deposited in banks at first. That’s to ensure that it doesn’t affect banks’ liquidity, causing the cost of borrowing to rise. The Central Bank will also place spending and transaction limits in the currency’s early stages to avoid erratic market fluctuations.
Yang says the next step is to gain the public’s support, build stable platforms, and establish regulations for the new digital currency.