Digital New Taiwan Dollar design exposed! The Central Bank publicly releases the retail-type CBDC application design, fully online from pocket money to disaster relief.

The digital new Taiwan dollar is quietly taking shape. Taiwan's central bank recently announced the latest design blueprint of retail CBDC (central bank digital currency) at a public hearing, "virtualizing" traditional physical cash and introducing it into the digital payment ecosystem, with the goal of building a digital wallet supported by national credit and available to all. This article will deeply analyze the application design of retail CBDCs, from wallet functions, user experience to innovation scenarios, and get a glimpse of how this fintech revolution has entered our daily lives.

What is retail CBDC? A type of "digital cash" issued by the central bank.

Retail CBDCs, as defined by central banks, have the same legal status as cash and belong to "legal tender in digital form". It is issued directly by the central bank, has no credit risk and liquidity risk, and has legal effect, and can be used for daily transactions in the future, like digital doubles for banknotes and coins. The system operates on a "two-tier platform architecture", with the central bank providing the basic platform, issuance and clearing mechanism, and private intermediaries (such as banks and payment operators) responsible for wallet opening, application development and service provision.

Motivation for Issuing Digital Cash: Inclusive Finance and Payment Upgrades

The central bank pointed out that the goals of promoting digital cash include:

In response to the trend of financial digitization: strengthen the national payment infrastructure.

Deepening inclusive finance: allowing those without credit cards and bank accounts to easily participate in the digital economy.

Improve the efficiency of cross-border payments and emergency assistance disbursement.

Maintain cash co-existence flexibility: even with the promotion of digitization, cash will continue to circulate.

Design principles: harmlessness, coexistence, and promoting innovation

The design of retail CBDC revolves around three main principles:

Do No Harm: Do not interfere with central bank monetary policy and financial stability, do not accrue interest, and avoid attracting excessive funds out of the banking system.

Coexistence: Coexists with cash and bank deposits, avoiding forced switching of payment methods.

Innovation: Combining the strengths of the public and private sectors to promote payment efficiency and market competition.

Wallet types are diverse, meeting various identity usage needs.

Digital Wallets are divided into "Named Wallets" and "Anonymous Wallets", with different usage limits set according to the level of user identity verification:

Type Limit on Balance Limit on Transactions (Daily) Target Domestic Legal Entity Registered Wallet 5 million 1 million Enterprise Domestic Individual Registered Wallet 100 thousand 100 thousand Individual Anonymous Wallet (Domestic) 30 thousand 30 thousand Mobile verification only Anonymous Wallet (Foreign Tourists) 30 thousand 30 thousand Foreign mobile verification

The named Wallet supports a recovery mechanism (such as when a mobile phone is lost), while the anonymous Wallet is closer to the cash concept, and once lost, it cannot be retrieved.

Basic functions: from transfers to offline payments are supported.

Digital cash Wallet will provide the following features:

Transfer and Payment: Supports aliases, cross-platform transfers, and automatic deductions.

Top-up and Redemption: Freely exchange with cash or bank accounts.

Offline Payment (In Planning): Transactions can be made without the internet, increasing application flexibility.

Innovative application scenarios are diverse; the digital New Taiwan Dollar is not just a payment tool.

The application functions designed by the central bank are highly creative, targeting three major scenarios: households, government, and business.

Parent-Child Wallet Management

Parents can set up regular allowances to be deposited into their children's Wallets, and limit spending amounts and purposes, creating a financial education environment in the digital age.

Merchant Rewards Program

The Wallet can automatically identify cashback eligibility. If the number of store visits meets the standards, the cashback will be credited directly, saving paper and labor costs.

Payment for the project is based on progress.

Governments or enterprises can use smart contracts to automatically disburse funds based on project progress, avoiding disputes and delays.

Government emergency relief

The public can register for subsidies directly through the App, without queuing or procedures, and the funds will be quickly credited.

Digital Voucher Integrated Payment

Support the "payment + coupon" payment mode, when people use digital coupons in the future, they only need one screen to complete the payment, which is convenient and fast.

Personal Data Protection and Security Design: Balancing Privacy and Transaction Security

The central bank stressed that intermediaries need to save and manage user information in accordance with the Personal Information Law, and the digital cash platform itself only retains de-identified information. If the judicial unit needs to access the information, it must do so in accordance with the law. At the same time, the platform introduces international ISO standards, public and private key encryption and in-depth defense mechanisms to ensure transaction authenticity and anti-hack capabilities. At present, the central bank has not yet decided on the official issuance schedule of the CBDC, but it is expected to hold a number of public hearings and briefings between April and December 2025 to gather opinions from all walks of life. At the same time, the relevant legal basis is being considered, including privacy protection and issuance authorization, and a special law may be drafted.

This article reveals the design of the digital new Taiwan dollar! The central bank has publicly released the design for retail CBDC applications, which will be fully launched from pocket money to disaster relief. It first appeared in Chain News ABMedia.