Taiwan’s central bank has not yet finished work on the Central Bank Digital Currency (CBDC) and the agency may need another two years to complete its work, according to the bank’s governor, it was reported. The central bank’s next tasks include gaining public support, ensuring the stability of the system, and establishing a legal framework for the currency.
Simulating the use of CBDCs
Nearly two years after Taiwan’s Central Bank Digital Currency (CBDC) initiative began, the country’s central bank governor, Yang Jin-lung, recently revealed that the project is still a work in progress. Yang warned that it could take as long as two years for the central bank to complete the task.
Speaking at the Digital Currency Forum, Yang also revealed that the central bank was simulating the use of CBDC, which is called a closed-loop environment in a Reuters report. However, the report stated that central banks now face three key tasks. They are to communicate and ultimately gain public support, to ensure the stability of the system, and to establish a legal framework for the currency.
According to him, the governor also acknowledged that the whole process may take longer than the expected two years.
While Taiwanese people are reportedly accustomed to using cash, Yang said the central bank must take into account the fact that future generations are more likely to use digital currency than physical cash.
“We still have to push on. After all, most of the young people of the future will be using cell phones, so we have to think about the next generation,” Yang was quoted in the press as explaining.
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