Chile's CBDC Advances: Poised for Digital Peso Launch

Chile is taking tentative steps in the direction of launching a CBDC, with the public apparently solidly behind the plans of the central bank.

According to Criptonoticias, the Central Bank of Chile (BCCh) has not yet committed to issuing a CBDC. A digital peso rollout, however, seems more and more likely as the BCCh announced it is set to commence Proof-of-Concept (PoC) testing.

Banco Central de Chile Moves in on CBDC

The Central Bank also performed a survey. This saw it ask "the general public and representatives of the public and private sectors" for their views on the issues which regard a CBDC.

The BCCh said almost 90% of survey respondents had "a positive attitude toward CBDC" pilots.

The following quote from the bank stated that "The primary objective of the PoC" is to experience technology related to digital currencies.

BCCh officials said that initial tests would be conducted in an internal manner and without the support of the private sector.

The bank added that it would only seek "external support" when it was ready to start real-world tests or roll out the coin.

Stablecoin Competition for LATAM CBDC

Alberto Naudon, central bank advisor, said, "To the extent that CBDC enters the space, it is unlikely that a so-called cryptocurrency could properly compete with it.

Naudon stated that it is highly unlikely "that Bitcoin (BTC) or another token be used en masse as money or a means of payment.". "Instead, he said that a digital peso would likely face more competition from stablecoins, some of which are 'backed by large companies.'

According to Naudon, "due to their nature," stablecoins "clearly present the potential" to attract "significant mass adoption.".

The media outlet noted that in "many countries" throughout the Latin America region, people were using USD-pegged coins "far more widely than BTC.".

The bank seems to have made something of a Uuxtaposition with many of its international counterparts on CBDC policy. This year, the BCCh kicked off a CBDC project that it has since abandoned, and it was unclear whether the nation would benefit from forging ahead with a digital peso rollout. But the bank appeared to have developed a change of heart this year, saying that the survey response had convinced it to try once more the CBDC project. The bank said it is moving "in line with the majority of the world's central banks.". Most of the main countries in the LATAM region, and dozens of states around the world, are either on the cusp of rolling out CBDCs or researching active digital fiat projects.