Taipei Bank Sets the Pace in Taiwan with Blockchain Payments

Taipei bank Fubon Commercial is reported to be the first of Taiwan’s banks to introduce a blockchain-based payment system, reports the Taipei Times.

The bank will essentially use the payment system for restaurants and merchants serving the National Chengchi University. It suggests that transaction times will now be cut to less than a second, adding that businesses will benefit from improved bookkeeping by using blockchain-based payment systems.

The bank had meetings with the university in 2017, resulting in the signing of a contract enabling it to carry out “key technology and engineering R&D for [a] blockchain payment network”, according to Cointelegraph.

According to the bank, the transaction volume of cooperative merchants in the zone near the university has quadrupled over the two-week period following the launch. Each transaction is encrypted and stored on the Ethereum-based blockchain, enabling merchants to refer back to the blockchain account book when needed. Fubon plans to follow up the university project with a more widespread blockchain application which takes in stores and businesses across the Chengchi area.

Taiwan’s capital had already announced its desire to become a “smart city” earlier this year, planning to integrate using blockchain to provide pollution sensors and health history tracking to its population. In February, the governor of Taiwan’s central bank, Yang Chin-long, stated that it was also exploring blockchain.

Taiwan has also made recent moves to tighten legislation surrounding the use of cryptocurrencies in line with a general shift towards global digital currency regulation. The Taiwan Central News Agency reported recently that the country’s minister of justice, Chui Tai-san, has said that Taiwan plans to have its new money-laundering legislation in place by November.

Taiwanese banks have ordered its regulator, FSC, to identify bank accounts offered to Bitcoin trading platforms as “high-risk clients”. This will require transactions through the accounts above a certain threshold to be flagged to the regulator.

 

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