The Chilean central bank is examining the introduction of its own CBDC

On September 22nd, the President of the Central Bank of Chile (BCCH), Mario Marcel; announced through a virtual conference that the institution is examining the possibility of introducing its own currency Digital based on a strategic plan that will be presented at the beginning of 2022.

During the seminar conference “Innovation in the financial industry: a boost for financial reactivation and inclusion”, Mario Marcel briefed on the various agendas that the Central Bank of Chile currently has, including: the presentation of the proposal of the Clearinghouse for Low Value Payments (CPBV), the payment schedule and the eventual issuance of digital money by the Central Bank and in relation to the Institution related to financial innovation.

As part of the “Payment schedule and possible issuance of digital money from the central bank “ was that the new project, which is still in a mock-up for the creation and introduction of the digital asset, was announced.

The Chilean central bank is examining the introduction of its own CBDC
The Chilean central bank is examining the introduction of its own CBDC

However, the bank president has stipulated that “It could be used to allow people to pay in stores and / or among themselves, or alternatively, to allow financial institutions to process payments between colleagues.”

Additionally, as published on the company’s web portal, “The digital currency is issued in a similar way to banknotes and coins.”

It should be noted that the Central Bank of Chile has a well-prepared working team led by advisor Alberto Neudo to implement this initiative, with the task of developing a medium-term strategy for payments. within the Chilean region.

Retail payments, wholesale tenders, cross-border tenders, private and cryptoactive digital tenders, the central bank’s digital currency and the infrastructures that support the various means of payment, both internally and externally., in accordance with the provisions of the Central Bank on its website.

Nowadays there are many governments who are creating new digital assets through the central banks of their countries in order to be at the forefront of the digital development that the whole world has seen since the introduction of cryptocurrencies, although this is not the case because it is not hidden from anyone that crypto assets have caused great anger in all societies and therefore more and more people are leaving aside or reducing the use of their local money to opt for digital currencies.

The digital money created by central banks is known as “Central Bank Digital Currency” (CBDC), which means “Central bank digital currency“.

Although CBDCs have several advantages such as payment efficiency, security from their use, and low transaction costs, they are still being scrutinized and studied by a group of central banks that they are focusing on the central bank through the development of “its operating modalities, regulations and proof of concept ”.

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