Considering the efficiency of decentralized ledger technology, Taiwan’s central bank has announced that it will explore the option of implementing blockchain technology in order to improve its operations.
On Monday, the prospect was revealed by Yang Chin-long, the newly appointed governor of the bank, in his brief ceremonial speech. He emphasized the implementation of new technology in the banking system and said that his agency will remain open-minded in the rapid development of the financial technology, especially with artificial intelligence, big data, and blockchain technology.
A rough translation of Mr. Yang’s speech noted: “Apart from closely monitoring the challenges that financial technology may add to the bank, it will also make good use of supervisory techniques to enhance its overall prudential supervision. Through big data and even artificial intelligence and other technologies to help our bank to predict and analyze economic and financial conditions more effectively.”
“In addition, the bank will also try to explore the feasibility of enhancing the security and efficiency of payment systems using decentralized ledger technology,” he added.
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He further explained that these technological developments will not only revolutionize the financial landscape of the country, but will also make a significant impact on monetary policy and the payment industry.
Taiwanese authorities made their stance on cryptocurrencies very clear in October 2017, as Taiwan’s Financial Supervisory Commission chairman Wellington Koo addressed the parliament. He clearly mentioned that Taiwan should follow nations like Japan, which provides licenses to cryptocurrency exchanges, rather than following the oppressive model of China and South Korea.
Blockchain in banking systems
Numerous banks around the world are considering the implementation of blockchain technology for services like cross-border payment transfers and data management for KYC/AML. Blockchain firms like R3 and Ripple have partnered with hundreds of banks worldwide to develop an efficient blockchain ecosystem for banking services.
Moreover, the government of countries like India, which have publicly denounced cryptocurrencies, has shown their interest in distributed ledger technology.