Register on the Bybit exchange and receive a bonus of $4000.
Kryptowaluty

Chile getting closer to launching CBDC

The introduction of CBDCs can help combat the shadow economy by providing better control over money circulation and reducing illegal financial transactions.

Date: 2024-04-23 Author: Marek Stiller
Chile getting closer to launching CBDC

Chile is tentatively moving toward launching a CBDC, and public opinion apparently strongly supports the central bank’s plans. According to media outlet Criptonoticias, the Central Bank of Chile (BCCh) has not yet committed to launching a CBDC. However, the introduction of a digital peso seems increasingly likely, and the BCCh has announced that it will begin Proof-of-Concept (PoC) testing.

Chile’s Central Bank makes move toward CBDC

the Central Bank conducted a survey of citizens to gauge market sentiment. BCCh said that nearly 90% of survey respondents had “favorable attitudes toward the CBDC program.” The bank reported that the “main purpose of the PoC tests” will be “togain experience with technologies related to digital currencies.”

BCCh officials said the initial tests will be conducted internally, without private sector support. The bank added that it will seek “external support” only when it is ready to start real-world testing or launch the coin.

CTA
Register for ByBit

Stablecoin competition for CBDC?

Alberto Naudon, an advisor to the central bank, said it is unlikely that Chile’s CBDC will face much competition from “so-called cryptocurrencies.” Naudon said there is very little likelihood that bitcoin (BTC) or other tokens could be “used as money or means of payment on a massive scale.”

Instead, he noted, the digital peso is likely to face more competition from stablecoins, some of which are “backed by large companies.” Naudon said that “due to their characteristics” stablecoin coins “clearly have the potential ” to achieve “significant mass adoption.”

The media noted that in many countries in the Latin American region, people are using USD-linked coins “more extensively than BTC.” The bank, like many of its international counterparts, appears to have made a bit of a turnaround in CBDC policy.

CTA
Sign up for ByBit
Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
Register on the Bybit exchange and receive a bonus of $4000.
Get Bonus