JAKARTA - Chile's central bank will decide in early 2022 on a strategy for the potential launch of its own digital currency. The president of Chile's central bank stated this Monday, September 27, as policymakers around the world seek to keep pace with the fast-spreading cryptocurrency.
Regulators are globally cracking down on digital coins, alarmed by the fast-growing market that surpassed a record $2 trillion in April. China on Friday 24 September said it was banning all crypto trading and mining.
In a presentation to legislators, Chile's central bank president, Mario Marcel, said he had set up a high-level working group to study a medium-term strategy for printing "digital pesos" in an effort to meet the needs of an "increasingly challenging payments industry."
"From objectives related to public needs, financial stability and effectiveness of monetary policy, the Central Bank will set out, in early 2022, a proposal with options and conditions for the eventual issuance of digital pesos in Chile," Marcel told lawmakers.
The use of digital payments has surged in Chile, Marcel said, with more than 40% of household consumption channeled through credit cards or similar systems, as well as digital transfers.
Global regulators fear the rise in privately operated currencies could undermine their control over the financial and monetary system, increase systemic risk, promote financial crime and harm investors.
Marcel said the working group would critically evaluate the risks to Chile's banking system and the efficiency of its monetary policy.
Chile, a relatively wealthy South American country, has for decades boasted one of the most stable banking and financial industries in the region.
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