Blockchain Could Reshape Our Currency Policy – Taiwan’s New Central Bank Governor

Blockchain, News | February 27, 2018 By:

Yang Chin-long, Taiwan’s new central bank governor, said using blockchain technology is a great way to improve the bank’s operations and would help the current financial system.

In a speech on Monday, Chin-long said the bank will pay close attention to the technology, as it will help the rapid development of the central bank’s large data. He added that the technology, while not having a material impact on Taiwan’s existing financial system so far, could nonetheless reshape the country’s currency policy and its payment industry.

The new central bank governor further said that the central bank will consider utilizing blockchain to improve the safety and efficiency of the electronic payment system in Taiwan.

Chin-long’s remarks come as perhaps the first time that the Taiwanese central bank has indicated an interest in applying blockchain technology’s benefits to its financial system.

In December 2017, Taiwan’s legislature passed the Financial Technology Experimentation and Innovation Act, which is widely known as the Regulatory Sandbox Bill. Taiwan has trailed behind several countries in the region, such as Singapore and South Korea, and this bill is expected to help remedy the country’s FinTech gap.

Under the bill, banks and FinTech startups can file joint applications to be considered for entry into the sandbox. This can lower frictions during implementations. Banks will be encouraged to incorporate FinTech or blockchain products and services into their operations.