Chile halts plans to unveil CBDC this year

TL;DR Breakdown
  • Chile suspends CBDC release this year
  • The central bank plans more research
  • The country will consult stakeholders

Chile has announced that it will halt a further move to release its CBDC to carry out more research into the project. According to the central bank in the country, debuting a CBDC takes a great deal, and the country must get it right. In this regard, Chile intends to carry out more intensive research into the project before it is officially unveiled. Before the official unveiling, the country plans to look into more benefits, risks, and other information.

The central bank wants to carry out further research

According to the statement, Chile plans to release a new report that will embody all these details so residents can go through them. The central bank intends previously had a keen look into the current system used for payment in the country with a view to look into several features. Some of these features include its benefits and the high risk of using it.

The bank also looked into certain principles behind the issuance of the CBDC. Although the bank feels okay with the report on traditional payment methods, it believes the CBDC could be a game-changer for the country. The bank thinks that using a CBDC will help improve the payment system in the country while adding competition and security among several platforms willing to facilitate the payments.

Chile plans to consult stakeholders before its CBDC release

Regarding the launch of its official CBDC, the bank feels that it does not have the complete information to carry on with the launch. It hopes to involve and consult specific individuals and bodies across Chile and release a new report. Chile has been all about creating its digital Pesos since 2021 after forming a working group to look into the requirements of the project. The plan was to launch the CBDC around this time, but it will no longer be possible due to the update.

The bank also discussed its fears over certain ills in the crypto market, including laundering and scams. The bank feels that rolling out a CBDC will help them accelerate their drive towards eliminating digital assets like Bitcoin in the country. The bank believes that although most people aren’t adopting crypto, it can potentially disrupt its financial system, leaving it in bad shape. Chile currently ranks in the 18th position in crypto adoption across the world. A recent survey showed that only about 14% of its population had been involved with crypto in the past. However, it sits in the fourth position across South America regarding adoption.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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