- The significant public support for Chile’s potential CBDC rollout, with nearly 90% of survey respondents expressing a favorable attitude towards CBDC pilots.
- This underscores the importance of gauging public sentiment in shaping central bank decisions regarding digital currencies.
Chile is taking significant steps toward the potential launch of a Central Bank Digital Currency (CBDC), with strong public support for the central bank’s initiatives.
According to reports from Criptonoticias, the Central Bank of Chile (BCCh) has not yet committed to launching a CBDC. However, it is increasingly likely that a digital peso could be introduced, with the BCCh announcing plans to begin Proof-of-Concept (PoC) testing.
The BCCh conducted a survey among the general public and representatives from both public and private sectors to gauge their opinions on CBDCs. The survey revealed that almost 90% of respondents expressed a favorable attitude towards CBDC pilots.
The primary objective of the PoC tests, as stated by BCCh officials, is to gain experience with technologies related to digital currencies. Initial tests will be conducted internally, without the involvement of the private sector. External support will only be sought when the bank is ready to move forward with real-world tests or the actual rollout of the digital currency.
Addressing potential competition, Alberto Naudon, an advisor to the central bank, expressed confidence that a Chilean CBDC would not face significant competition from traditional cryptocurrencies like Bitcoin (BTC). Instead, he suggested that stablecoins backed by large companies could pose a more formidable challenge, given their potential for significant mass adoption.
Stablecoins, particularly those pegged to the US dollar, are widely used in many Latin American countries, often more so than Bitcoin. This underscores the importance of considering stablecoins as potential competitors in the digital currency landscape.
The BCCh’s apparent shift in CBDC policy reflects a broader trend among central banks worldwide. While the bank previously initiated and then abandoned a CBDC project in 2022, citing uncertainties about its benefits, it now appears convinced to revisit the idea. The positive response to its recent survey has influenced its decision to explore CBDC implementation once again.
This move aligns with the strategies of many central banks globally, as numerous countries, including those in the Latin American region, are actively exploring or preparing to launch CBDCs. Chile’s renewed interest in CBDCs reflects its commitment to staying abreast of global developments in digital finance and ensuring its currency remains competitive in the evolving digital economy.
Chile’s Pursuit of CBDC Reflects Global Trend
Chile’s tentative steps towards launching a Central Bank Digital Currency (CBDC) highlight its commitment to embracing digital finance trends. With strong public support and a renewed focus on exploring CBDC possibilities, Chile is aligning itself with the global movement towards digital currencies.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
