Chilean central bank: the central bank issued a digital currency – long way to go

nnnMario Marcel, the governor of the Chilean central bank, had previously expressed his views on the chain and the digital currency in an activity in the UK, noting that the central bank would have to work for digital money for many years, and given a series of challenges , Its deployment will not be achieved in the short term. But he also recognized the innovative role of the technology, called for not hinder its development.n
nnTranslated by: Inan
nThe president of the Chilean central bank said he believes the central bank may still need “many years” to achieve the issuance of digital money.n
nAccording to the announcement by the Chilean central bank last weekend, Mario Marcel, his governor, delivered a speech in an event in the UK on June 29th. The event was hosted by the Cambridge University Alternative Financial Research Center (CCAF).n
nIn his speech, Marcel has talked about block chains and distributed books many times, noting that financial firms are experimenting with their applications and possible commercial uses. Marcel seems to be neutral, he presents potential opportunities for DLT, such as increasing market efficiency at a lower cost, and about mortgage risk, such as fluctuations in the digital money market and the possibility of a lightning crash.n
nHe also cites the work of institutions such as the Canadian Central Bank and the Bank of England to study partial or part-based digital money systems based on block chains. The Canadian central bank showed its “CAD-coin” project last April, but later said it would not use the technology to replace its large payment service.n
nMarcel also said he believes that the issuance of such a digital currency takes a long time, because there are still a lot of technical challenges, and will lead to a more extensive national central bank cultural change.n
nHe told the participants:n
nn”The central bank’s digital currency (CBDC) seems to inevitably turn the traditional role of the central bank at the top of the tiered mobile system into a large retailer – the deposit is likely to be quickly combined with the loan.”n
nnHe added:n
nn”This means that the real CBDC implementation may take many years.”n
nnHowever, Marcel believes that this technological innovation should not be hampered by strict regulation.n
nHe concluded:n
nn”According to Bank of England Governor Mark Carney, financial technology innovation can neither be laissez-faire nor strangled in the cradle.”n

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