The new Governor of the Central Bank of Taiwan, Yang Chin-long, has made it pretty clear in his first-ever speech that the central bank will be exploring opportunities in the blockchain space.
According to the new Governor, financial technology has been changing rapidly. It is not just limited to the blockchain technology but also to big data. The Governor further added that currently, the financial systems in Taiwan are not impacted by this upcoming technology. In the future, however, it can reshape the financial industry in the country.
He also added that he has just begun tenure, and he will look to explore blockchain opportunities, to try to build innovative solutions with the help of the technology.
This is the first time that the Central Bank of Taiwan has indicated its intent to use blockchain technology to introduce newer solutions for the financial system. Many of the banks as well as financial institutions in Taiwan are already using the Azure blockchain-as-a-service from Microsoft to build their backend. Thus, indirectly many institutions in Taiwan are currently using the blockchain technology in order to build a proper interface for the customers.
Currently, 6 financial institutions are working together in order to build such a platform.
The current statements by the Governor will be a shot in the arm for most of the financial institutions. With the emerging acceptance of blockchain technology, more and more financial institutions all over the world will collaborate to use the technology. Blockchain-based platforms can bring a revolution in the financial system. They can make the financial system much more efficient. This will, in turn, help the financial industry retain customers.
Cryptocurrencies are fast emerging as a growing threat to financial institutions and banks. And they have been looking at blockchain-based systems to counter that threat. This is the reason why any optimism on part of the Central bank of Taiwan to use the blockchain technology is a huge positive for most of the financial institutions in Taiwan.