BULL STREET - The art of the Con

The Current State of Affairs in Taiwan

Coinage was found wanting as a vehicle for large denominated values, and paper money was invented. This also dramatically aided the national treasuries of the issuing countries because the difference between the cost of printing the money and its inherent value (referred to as “signorage”) is extremely substantial.  Paper, as a cheaper, higher value currency, was favored, but was much easier to counterfeit.

However various high tech countries soon developed severe forgery problem. In Taiwan the counterfeiting grew complex that government began to ask their citizens to use electronic vehicles like debit or credit cards, which were tougher to fake instead of money. When you realize the difference that this would make to the issuer in terms of profit you can get some idea of how serious the problem had become. 

However, plastic wasn’t perfect either and had other problems: “Taiwan consumers are urged to use “plastic currency” more often, amid outrage against currency counterfeiting. “According to Chen Chi-chu, acting president of the International Commercial Bank of China, only in a cashless society can currency forgery be completely extinguished. Chen suggested that the government help convert the entire payment market in Taiwan to a system using IC[64] cards rather than paper and metal currency. This will enable banks to issue electronic IC cards to consumers, who will in turn make their spending completely electronic.”[65]

“Justice Minister Chen Ding-nan announced recently that those convicted of forging Taiwan currency would face stiffer penalties in the future. The maximum penalty for currency forgery is death.”

 

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