TAIPEI: Taiwan authorities said yesterday it will require a clearing system for New Taiwan dollars and renminbi (yuan) before mainland tourists will be able to use their China Unionpay ATM cards on the island.

Chairman Sean Chen of Taiwan's Financial Supervisory Commission told legislators the Mainland Affairs Council, which orchestrates the island's cross-Straits policy, will have to decide when the system will be in place.

Taiwan is behind schedule in its efforts to allow mainlanders to use ATM cards on the island. The measure is a part of the wider effort to expand tourism from the mainland, as a step toward improving the island's sagging economy.

Both sides were in talks about the cards last June, according to sources with direct knowledge of the situation.

If plans materialize, renminbi could become widely accepted in Taiwan for the first time since 1949.

China Unionpay is controlled by the mainland's central bank, which operates a nationwide bank payment system by means of a computer network linking automatic teller machines throughout the mainland.

China Unionpay cards already are accepted in more than 30 countries and regions, in competition with global players such as Visa Inc and MasterCard Inc.

Reuters

(HK Edition 03/12/2009 page16)