The new Chief of Central Bank in Taiwan has set the stage to explore the use of blockchain technology to enhance the efficiency and security of its operations.
The new governor of the Taiwan Central Bank, Mr. Yang Ching Long has revealed the plans at an inauguration ceremony on Monday to implement the blockchain technology in its financial dealings. He said the team at the central bank will study the use of latest technologies including the latest more secure distributed ledger technology and Big Data in its business operations.
Though emerging technologies may not have an impact on the existing financial system of Taiwan, it is likely to reshape the currency policy as well as payment industry of the Island.
The chief further said the federal bank will implement the distributed ledger or blockchain technology to improve efficiency and security of the electronic payment system of Taiwan. This is the first time that the Central Bank Chief has shown an interest to embrace the benefits of blockchain in the financial system though it is in the nascent stage.
According to Mr. Yang, the use of big data analysis and artificial intelligence technologies will help to analyze and predict the economic conditions on the worldwide arena. He said the central bank under his tenure is open to inviting open technologies and study about their utilization in framing the financial industry.
Mr. Yang, who has obtained a doctorate degree in economics from the UK based University of Birmingham, was inducted an economic researcher at the central bank in 1984.
According to the report published by CoinDesk at the end of 2016, the six financial institutions in Taiwan have formed a consortium payment platform using the Azure blockchain technology of Microsoft as a service platform. However, the initiative at that time has come under the lens of Regulatory authorities of Taiwan.
In 2017, Taiwan has established a regulatory sandbox environment and passed the Financial Technology Experimentation/ Innovation Act that allows the financial establishments develop and use the blockchain technology.
Mr. Shih Jun-ji, the Vice President, has indicated the necessity to implement stringent measures to regulate the cryptocurrencies to prevent the possible collapse and its negative effect on the economy.
