Taiwan's Central Bank Unveils Blockchain-Based Gold Tokenization System

Taiwan's Central Bank is working on tokenizing gold passbook services through its 'Financial Alliance Chain', which is expected to go live by year-end. This will allow customers to withdraw physical gold at designated Bank of Taiwan branches, cutting wait times from two weeks to three days and reducing withdrawal costs.

The Financial Alliance Chain is a collaboration between the Central Bank, 12 banks, and the Financial Information Service Co. It aims to integrate tokenized central bank reserves, bank deposits, and other asset tokens onto a single programmable platform, as proposed by the Bank for International Settlements (BIS).

Bank of Taiwan will update on-chain gold quotes via an oracle, enabling banks to complete real-time simultaneous settlement of funds and gold tokens. This will reduce manual reconciliation time.