Taiwan’s central bank announced on Sunday that it has no set timetable for launching a digital currency, citing the complexity and scale of the project. The bank has been actively working on a pilot program for a government-issued digital currency, which aims to enable people to use a digital wallet for payments, eliminating the need for debit or credit cards.

However, the bank emphasized the importance of public understanding and announced plans to hold public hearings next year to disseminate knowledge about digital currency.

In a report to parliament, the central bank stated, “Although the bank currently has no timetable for issuing central bank digital currency, in the process of continuous research and experimentation it is already improving the processing efficiency and innovative application of the payment system.”

The central bank described the promotion of a central bank digital currency (CBDC) as a “huge and complex project that will need to be carried out for a long time.” This statement comes ahead of central bank governor Yang Chin-long’s scheduled appearance before lawmakers on Monday to answer questions about the digital currency initiative.

Globally, 134 countries representing 98% of the world economy are exploring digital versions of their currencies. According to a study released in March, over half of these nations are in advanced stages of development, including pilot programs or actual launches. Proponents of digital currencies argue that they offer new functionalities and serve as an alternative to physical cash.

The central bank’s cautious approach reflects the significant challenges associated with implementing a digital currency. These challenges include ensuring the security and efficiency of the digital payment system, addressing potential privacy concerns, and integrating the new currency into the existing financial infrastructure.