Taiwan Central Bank Governor Deems Cryptos as Untrustworthy
Taiwan’s central bank Governor, Yang Chin-Long, has deemed any transactions regarding cryptocurrencies as untrustworthy in comparison to traditional banking and fiat money. His statements were made during a meeting discussing how the country’s reserve bank would handle and adapt to the ever-changing digital economy in Taiwan. According to Chin-long, stablecoins and long-standing currencies have proven their efficiency through countless years of operation.
As Chin-long explains it, trust is a vital key component of any currency attempting to become a legitimate method of payment and exchange and cannot be forsaken whatsoever. He states that without trust, a currency will continue fluctuating and become unstable, resulting in its inevitable fall.
He then heavily and negatively spoke about digital currencies in general, addressing their unreliability and volatility on a daily use and lacking the required and necessary regulations and monitoring, these cryptocurrencies can be used to conduct malicious activities throughout the economy and industry.
Additionally, the entire notion of a cryptocurrency was to provide a quick, simple and every-day manner of paying for products and services. As Chin-long stated on this matter, he highlights that cryptocurrencies have been instead used to make several risky investments and as a speculative tool of trading.
Around five years ago, the central bank did deem cryptocurrencies as anything but true assets. As a result, the bank refused to consider digital currencies as legitimate and legal payment methods. Instead, they’ve been referred to as digital merchandise.
Last May, the TBSRO, and TPCB saw their launch as two organizations meant to collaborate and create new standards in terms of trust and more for the current domestic market. As it appears, the government maybe pouring heavy funds into possible cryptocurrency use cases. Further reports hint to a special attention by the central bank aimed at studying how oversea financial institutions are handling their own cryptocurrency environments.
A new regulatory system is set to be revealed by the country’s FSC in November and the agency is currently operating alongside the Ministry of Interior, Taiwan’s bureau of investigations and the reserve banks a means of creating a new draft for regulations.