Chile to Strategize Its Digital Currency Roll-Out in 2022

Shumaila  |  Sep 28, 2021

The President of the Central Bank of Chile, Mario Marcel has announced that it will decide an action plan on the potential roll-out of its digital currency in early 2022 on Monday. This step is in line with the fast-paced adoption of digital currencies by different countries around the world.

As the world economies and regulators are escalating their crackdown on cryptocurrencies, there's a growing need for localized digital currencies that governments can control and adopt for their individual nations. A fresh example is China which recently reiterated its countrywide ban on the trading and mining of all digital assets.

Chile to Work on the Action Plan of Rolling Out Its Own Digital Currency in 2022

The central bank president, in a presentation before legislators, said he has convened a high-level working group or network to study the medium-term strategy for launching and minting the digital "Peso" in a bid to meet the demands for "increasingly challenging payments industry,".

"From objectives linked to the needs of the public, financial stability and effectiveness of the monetary policy, the Central Bank will define, at the beginning of 2022, a proposal with options and requirements for an eventual issuance of a digital peso in Chile," Marcel informed the lawmakers.

The Use of Digital Payments has Soared in the Country

Marcel also revealed that the working group would critically evaluate the impact and risks of digital currency on the monetary policy of the central bank and its overall system.

He also noted that with more than 40 percent of household consumption being processed through credit cards or similar systems, as well as digital transfers. The use of digital payments has soared to a whole new level in Chile.

Chile is a wealthy South American nation as compared to its neighbors and has boasted itself as being the region's most stable banking and financial nation.

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