A practical focus will be added to the exploration process begun in May 2022 that will allow the analysis and study process to be complemented, with an applied instance, in line with the evolution that other economies have followed.
The Central Bank of Chile explained this Thursday that it will advance in the design and implementation of tests in "controlled environments" (what is known in the jargon as a sandbox ) to better understand the challenges and implications in technological and operational terms that the eventual issuance of a digital currency in the southern country.
This is confirmed in the second report "Issuance of a Digital Currency of the Central Bank in Chile", which describes the process of dialogue and interaction with the public carried out by the entity regarding the potential issuance of a currency.
A practical focus will be added to the exploration process begun in May 2022 that will allow the analysis and study process to be complemented, with an applied instance, in line with the evolution that other economies have followed.
However, the bank has pointed out that this exploration phase does not imply the decision to issue a digital currency, nor replace or eliminate traditional means of payment, particularly cash.
"The Central Bank of Chile continues to consider that there is still not enough information to make a definitive decision regarding its issuance," the report states.
GROWING INTEREST
The organization's interest in continuing the process of analysis and study of a digital currency is framed in a context in which various central banks and international organizations have continued to develop an agenda of conceptual and practical exploration on this issue.
The above, added to the growing digitalization of payments, the accelerated technological advance and the incorporation of new instruments and actors to the payments market, has made this an intense area of work within the bank's daily activity.
The institution has confirmed in its report that there is interest from different agents in the eventual issuance of a digital currency, and that potential benefits are perceived associated with competition and the way in which the payment system is currently organized.
Additionally, it has pointed out different potential use cases. However, it has identified challenges and risks that must be taken into account, such as its effects on the functioning of the financial system and on the transmission of monetary policy, as well as the challenges it entails in technological and institutional terms.
