Central Bank of Chile will carry out new tests to issue digital currency

In 2022, the Central Bank of Chile began exploration to launch a CBDC. Testing in controlled environments will be added this year to pave the way for a new digital currency

The Central Bank of Chile recently indicated that the tests started in May 2022 for the launch of a new digital currency will be expanded.

In the announcement made last Thursday, the Central Bank of the South American country indicated that there will be tests in a controlled environment, which is known as a sandbox, “to better understand the challenges and implications in technological and operational terms that the eventual issuance of a digital currency.”

The measure has been included in the second report “Issuance of a Central Bank Digital Currency in Chile”, which records the dialogue and interaction with the public carried out by the regulatory entity on the potential issuance of a CBDC.

This year, the explorations will include the relevant processes to complement the analysis and study, with an applied instance, so that the Chilean economy aligns with the advances of other countries in this area.

The bank has made it clear that the evidence does not indicate that the decision to issue a digital currency in the country has already been made. Much less is it a replacement or substitution for traditional Chilean 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,” according to the report.

With these tests, Chile seeks to follow in the footsteps of other central banks in the international environment, added to the increasingly marked digitalization of payments, as a sign of technological evolution.

The Central Bank of Chile is betting with the measure to achieve greater benefits related to or derived from the digital economy.


Source: americaeconomia

(Reference image source: Thomas Griggs on Unsplash)

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