In this regard, the Central Bank of Chile clarified that this is a first approach to the issue, so it still requires much more research and interaction with companies, regulators and citizen participation.
This week, the main entity responsible for the monetary policies of the Chilean nation, the Banco Central de Chile (BCCh) published a new report specially dedicated to digital currencies issued by central banks. (CBDC), in which he presents a first evaluation in relation to this type of assets, contemplating the benefits and challenges that the issuance of a local currency in this format would entail.
According to the bank, the report in question is titled “Issuance of a Central Bank Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. Currency currency is a medium of exchange that defines value. in Chile”. which was elaborated by the Digital Payments Working Group of the entity, led by board member Alberto Naudon.
Considerations on a CBDC for the Central Bank of Chile
In relation to the possible issuance of a CBDC, the bank indicates that this is part of the growing digitization of payments, driven by technological advances and the incorporation of new instruments in the market, so this asset could further promote digital transformation and mitigate certain risks.
Specifically on this idea, the report assures that this currency could contribute to the development of a more competitive, innovative, integrated, inclusive and resilient payment system”. “. In this sense, the entity would be referring to the popularity of cryptocurrencies, specifically stablecoins, as a means to acquire products and services both locally and internationally.
Another important consideration is that the issuance of a CBDC is seen as one more alternative in addition to the existing ones, so it does not represent the elimination of any other payment method such as cash:
“It is important to mention that the issuance of an MDBC is not intended to eliminate or replace traditional means of payment, particularly cash, but rather to provide a complementary means of payment to the existing ones. Satisfying people’s demand for cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. is and will continue to be a primary task of the Bank, which is not altered by this exploration process…”.
Making the decision will take time
Bearing in mind that this is only a first approximation, theBanco Central pointed out that much more study is still needed before a decision as momentous as launching a CBDC.
In this regard we read:
“However, the report concludes that a final decision on this issue requires a more in-depth analysis of its costs and benefits, as well as a more thorough comparison with other policy alternatives that address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the same challenges.
In addition, they mention that it is necessary to start working now to provide the entity with greater capacities to assume the possible integration of this type of assets, as well as to develop projects to start testing, in which regulators, companies and end users should participate.
The entity reiterated that like them, there are many other international entities investigating CBDCs in their respective countries, and that although some are well advanced, this does not mean that they have issued digital versions of their own currencies. This reflects that the process takes time and that there are still no international standards to regulate these currencies.
Finally, the bank clarified that this will also be consulted with citizens, so they will be holding seminars and conferences to talk in more depth about the issue. They will also hold workshops to exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. ideas with various sectors, and the results will be presented in a new report to be published at the end of the year.
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Source: Central Bank of Chile
Version by Angel Di Matteo / DiarioBitcoin
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