The post Taiwan and the steps towards the creation of the CBDC appeared on BitcoinEthereumNews.com.

Taiwan has taken a significant step towards the digitalization of its financial economy with the construction of a prototype platform for a central bank digital currency (CBDC).  This development fits into a global context where numerous nations are exploring the potential of CBDCs to modernize their monetary systems. The central bank of Taiwan began studying the possibility of introducing a CBDC in 2019, and on Wednesday the governor of the central bank will present a research report on the current state of the project to parliament. The context of CBDC in Taiwan CBDCs are digital currencies issued by central banks that represent an electronic form of a country’s fiat money. Unlike cryptocurrencies such as Bitcoin and Ethereum, CBDCs are issued and regulated by central authorities, which gives them stability and institutional trust. Many countries are considering CBDCs as a tool to improve transaction security, increase payment efficiency, and promote financial inclusion. Taiwan initiated its research on CBDC in 2019, recognizing the importance of keeping up with technological innovations in the financial sector. The central bank undertook extensive studies and conducted several experiments to evaluate the implications of a digital currency on the national financial system. This research involved technical analyses, risk assessments, and considerations on cybersecurity. The construction of a prototype platform represents a crucial step in this journey. The platform will allow the central bank of Taiwan to test various aspects of the CBDC in a controlled environment. This includes the evaluation of the technological infrastructures necessary to support the digital currency, the verification of transaction security, and the examination of potential economic implications. The main objective of the prototype platform is to simulate the issuance, distribution, and use of the CBDC in a real-world context. This will allow for the identification of any technical and operational issues before…

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Filed under: News - @ July 9, 2024 3:16 am