Chile Central Bank Moving Towards Launch of CBDC: Public Support Grows

Chile Central Bank Gears Up for CBDC Launch as Public Shows Support

Chile is on the brink of launching its own Central Bank Digital Currency (CBDC), with the public showing strong support for the initiative. The Central Bank of Chile (BCCh) has announced plans to conduct Proof-of-Concept (PoC) testing for a digital peso, following a survey that revealed nearly 90% of respondents in favor of CBDC pilots.

The BCCh stated that the main objective of the PoC tests is to gain experience with digital currency technologies. Initial testing will be done internally, with external support sought only when ready for real-world implementation. The move towards a CBDC comes after the bank abandoned a similar project in 2022, but has now been convinced to revisit the idea based on public feedback.

Alberto Naudon, an advisor to the central bank, expressed confidence in the potential success of a digital peso, noting that stablecoins backed by large companies could pose more competition than cryptocurrencies like Bitcoin. The bank’s decision to move forward with a CBDC aligns with the trend seen among central banks worldwide, with many countries exploring or implementing digital fiat projects.

As Chile prepares for the potential launch of a CBDC, the global financial landscape continues to evolve, with digital currencies playing an increasingly prominent role. Stay tuned for updates on Chile’s progress towards a digital peso and the impact it may have on the country’s financial ecosystem.