It has been reported that Taiwan’s central bank is considering, and looking into implementing blockchain technology as a way of helping to improve its operations.
Yang Chin-Long, who is the new governor of the central bank, spoke to Finance Magnates about the possibility of implementing the new blockchain technology, including areas such as artificial intelligence, Big Data and blockchain; saying,
“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…Big Data and even artificial intelligence and other technologies [will] help our bank to predict and analyse 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 decentralised ledger technology.”
He went on to add that by implementing the new blockchain technology, it could transform the country’s landscape, all whilst having a serious impact on its monetary policy and payment industry.
Back in October last year, Taiwan’s Financial Supervisory Commission Chairman, Wellington Koo, took to parliament to declare that Taiwan should be looking at Japan, and how they handle cryptocurrencies, where they provide licenses to cryptocurrency exchanges. The Governor of Taiwan’s central bank, who was at the time, Perng Fai-nan, said in the same month that Bitcoin should be added to the notification system in the country as a way of preventing money laundering.
Taiwan are not the only country to be considering this new development, and many banks around the world are looking into implementing blockchain technology for various services, such as cross-border payment transfers and data management.
Just this month, the UAE Exchange, which is one of the largest payment providers in the Middle East, announced their partnership with Ripple to join its blockchain to help with cross-border payments. Ripple have too signed a deal with the Saudi Arabian Monetary Authority, who enable banks in the Kingdom of Saudi Arabia to work with its cross-order payments technology.
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