This year Chile published its second report exploring a potential central bank digital currency (CBDC). The country has the highest rate of financial inclusion in the region at 85-87% with a significant proportion of digital payments. As a result the Banco Central Chile does not see a current need for a CBDC (or MDBC as it’s called locally). However, it wants to prepare in case the need arises in the medium term.
Its first report primarily covered desktop research, whereas the second relates to public engagement. This includes a public survey with 450 responses and eight round table working groups with payment industry participants.
Sixty-three percent of survey respondents thought that a CBDC could catalyze greater innovation. Regarding motivations, offering an alternative to current electronic payments was seen as the number one driver, given current payment mechanisms have some frictions, although the details were not shared. There’s also a desire to encourage greater competition.
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