The Central Bank of Chile is in the process on how to issue its own Central Bank digital currency. The report issued by the BCCH on May 11 has the possibility of creating a central bank digital currency for the future.
The reports contain some of the following benefits:
- BCCH took this decision to enhance the use of digital transformation and in mitigating some of its risks.
- CDDC will mostly help in the contribution to the development of a more competitive, innovative, integrated, and resilient payment system.
- The research and study also show that issuing CBDCs is a time-consuming and long process for which there are no internationally agreed standards or any kind of practices.
- There are many reports which show that many different central banks have the engagement of digital currency but only a few of them are able to make this decision.
- Thus, the layout of a CBDC and technological and institutional demanding situations need to be cautiously analyzed, with the intention to save you poor effects on the functioning of the monetary device and at the transmission of financial policy.
- The record factors out that the layout of CBDC calls for the participation of all involved agents, which includes regulators, customers, and companies considering the results of a CBDC issuance at the fee device.
- The BCCH plans to paintings on constructing capacities withinside the Bank and flows beforehand withinside the improvement of unique initiatives that permit exceptional designs to be tested.
- The record clarifies that the issuance of a CDBC will now no longer put off or alternative conventional approach of fee, particularly cash, however as an alternative offer a complementary approach of the fee.
The final decision of issuing CBDC would require a much deeper analysis in terms of costs and benefits.