Yang Chin-long, the new governor of Taiwan’s central bank said speculation has taken over from cryptocurrencies’ original role as a payments tool.
Earlier, Yang Chin-long while still as a deputy chief of Taiwan’s central bank stated that the banks are commencing the estimations of the advantages and trials of virtual currencies backed by several central banks.
“At present, some national central banks, including the Bank, are evaluating the advantages and challenges of issuing statutory digital currencies”.
Yang believes that cryptocurrencies are widely in use, as it replaces the legal currency. However, it might effect on the supply and demand of reserves, money multipliers and implementation of the central bank’s monetary system.
He adds saying that Taiwan’s Central Bank have assessed the benefits and trails of digital currencies:
“In the long run, it is not Instead of responding to the trend, the central bank has set up an online financial information working group and a digital financial research group to collect and analyze relevant information”.
Yang Chin-long argues with the lawmakers at the island’s legislative arm. According to the report from Taiwan’s Apply Daily, digital currencies are not meeting its original function in payments.
He, ‘wanted to go in that direction’, have become a commodity with extreme volatility due to market speculation. But we can’t go as far as announcing we plan to issue digital New Taiwan dollar yet”.
Moreover, the new governor Yang Chin-long also suggested in his inauguration speech on Feb 27th that his firm will use blockchain technology to improve the productivity of banking.