The Central Bank of Taiwan (CBT) has accelerated its research into the development of a Taiwanese central bank digital currency (CBDC) and expects to complete the second phase of its pilot programme by September this year.

The CBT completed a CBDC feasibility study in June 2020 and is now focusing on the technical aspect of the project, building a prototype CBDC platform and simulating its use for retail payments.

It is developing the digital new Taiwan dollar using a two-tier retail model that will coexist with the country’s current banking and financial system, but has yet to confirm whether it plans to officially launch the CBDC following the successful completion of the pilot.

“It is understood that, once the digital new Taiwan dollar is on the road to the future, the Central Bank of Taiwan plans to let the public choose to open a digital currency (CBDC) wallet with the bank that they deal with and exchange their deposits at a 1:1 rate,” local news outlet RTI reports.

“It can be used as cash in any place through the mobile app, and there is no problem with tying it to credit and debit cards.

“There is no age limit, children can use it and the public does not have to worry about carrying too much cash.”

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