Chile Is Getting Closer to Introducing a CBDC

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Chile is tentatively moving towards the launch of a​ CBDC, with the public ‌apparently firmly supporting ‌the central bank’s plans.

According to media outlet Criptonoticias, the Central Bank of Chile (BCCh) has not yet committed to⁢ a CBDC launch.

However, the launch of a digital peso ⁤is becoming increasingly likely as‍ the BCCh has ‍announced that it will begin proof-of-concept (PoC) ⁣testing.

Chile’s central bank ⁣takes steps​ towards CBDC

The central bank also conducted a survey. It said it asked “the general public and representatives of ‍the public⁣ and private sectors” for‍ their opinions on CBDC.

The BCCh ⁣said nearly ‍90% of survey respondents had “a positive attitude towards CBDC” pilot projects.

The bank said⁢ that “the ⁢main objective of ‌the PoC tests will be to gain experience with technologies​ related to digital currencies.”

BCCh⁢ officials said the​ initial tests would be conducted internally and without ⁤private sector ​support.

The bank‍ added that it‍ would only seek “external support” when it was ready to launch real-world testing or to launch ⁣the coin.

Stablecoin competition for LATAM CBDCs? (Source: Banco Central ​de Chile)

Stablecoin ​competition for LATAM ⁢CBDCs?‍ Stablecoin competition for LATAM CBDCs?

Chilean Central Bank President Rosanna Costa said plans‍ to extend one of the ​world’s largest rate-cutting cycles remained intact as policymakers had already factored ‌new global risks into their forecasts‌ https://t.co/0KJTua1Qiu

— Bloomberg Economics (@economics) April 20,⁣ 2024

Back in 2022, the BCCh ​began a CBDC project and then abandoned it, ⁣unsure ⁤whether it would‌ benefit the country to push ahead with the launch of a digital peso. By 2024,⁣ the⁤ bank changed its mind, claiming that ‍survey responses⁣ convinced it to give the CBDC project another chance.

According to the bank, it is moving in line with “the majority of central ⁤banks around the⁣ world.”

Numerous countries, including major Latin⁢ American countries, are ‌either preparing to launch CBDCs or‍ are actively researching digital fiat projects.