The central bank governor said that the CBDC prototype will not use smart contracts or blockchain. The state stablecoin is planned to be used through a “digital voucher” system being developed by Taiwan’s Ministry of Digital Technology.
Chin-lung explained that in the future, government agencies will be able to issue digital vouchers through this system. The Ministry of Digital Technology will oversee their distribution, and the Central Bank will manage payments and settlements with digital vouchers. According to the Central Bank Governor, the digital voucher system can be considered a “warm-up” for the upcoming pilot projects on the digital Taiwan dollar.
Testing of the CBDC prototype for the digital voucher system will begin in late 2024 or early 2025, Chin-lung promised. He reiterated that the government has not yet set a fixed timeline for the CBDC pilots, and the exact launch date of the state-owned stablecoin is unknown.
The briefing also featured Taiwan Financial Supervisory Commission (FSC) Chairman Jin-Lung Peng, who said the agency is working on a special law on crypto assets, which is planned to be submitted to the Executive Yuan, Taiwan’s highest administrative body, in June 2025. Currently, the crypto industry in Taiwan is largely unregulated, but the FSC requires cryptocurrency service providers to comply with anti-money laundering (AML) laws.
In June, Taiwan authorities formed the Taiwan Virtual Asset Service Provider Association, an industry association that is tasked with developing regulations for digital assets in line with government guidelines.
Source: Bits
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