Central Bank of Chile tackles digital currency

Wednesday 18 May 2022 14:53 CET | News

The Central Bank of Chile (BCCH) has announced it is considering issuing its Central Bank digital currency, the digital peso.

BCCH published a report in that matter, detailing the possibility of creating a digital currency in the future, and the mechanism it would use. Among the benefits of issuing the digital peso, BCCH mentions that it would enhance the benefits arising from digital transformation while mitigating some of the risk associated with it, as well as potentially contributing to the development of a more competitive, integrated, and inclusive payment system in Chile.

The report also states that the issuance of a CBDC (Central Bank digital currency) will not eliminate or substitute traditional payment methods, especially cash, but rather provide an alternative and a complementary means of payment. 

However, for BCCH to launch its digital peso, it requires a deep analysis of costs and benefits, as well as public consultations with regulators, users, and providers considering adopting the digital currency.

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Keywords: central bank, regulation, digital currency, digitalisation, digital banking, regulatory sandbox
Categories: Banking & Fintech
Companies: Central Bank of Chile
Countries: Chile
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Banking & Fintech

Central Bank of Chile

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