In June 2020, the Central Bank of the Republic of China (CBRC) in Taiwan successfully concluded the initial phase of its program to assess the viability of a wholesale Central Bank Digital Currency (CBDC). The outcomes of this phase revealed certain limitations associated with utilizing distributed ledger technology (DLT). Particularly, DLT was inadequate in efficiently handling real-time, high-frequency, and high-volume payment transactions. Subsequently, the Central Bank progressed to the program’s second phase, which focused on developing a general-purpose CBDC. Through this phase, the Bank engaged in technical experiments and constructed a prototype CBDC platform. This platform enabled the simulation of CBDC application in retail payment scenarios. Collaborating with five commercial lenders, the CBRC conducted trials.
The insights derived from the second phase’s simulations will serve as the foundation for public discourse. The Central Bank aims to gather a wide range of external opinions and perspectives to comprehensively evaluate the feasibility of potentially issuing a CBDC in the future.
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