Chile’s central bank manager Mario Marcel said the blockchain has potential, but central bank digital currencies (CBDCs) can be useful without using it. He expressed this opinion during a panel discussion at the forum of the Organization for Economic Cooperation and Development.
According to him, the CBDC concept is not new and has existed since the advent of the first real-time gross settlement systems (RTGS).
He mentioned the risks of using the blockchain – the relative novelty of the technology, the lack of uniform regulation and the energy costs of the Proof-of-Work algorithm.
According to the official, the blockchain is convenient when several participants require access to the information registry or when they “do not necessarily trust each other”.
When central banks issue their own digital coins, “trust should be taken for granted,” he concluded.
CBDC has a number of advantages, such as speed, accessibility, transparency and security, and they can bridge the “gaps” in traditional monetary policy, says Marcel.
Nevertheless, it is better for central banks to pay attention to alternative solutions for making quick payments, he stressed.
Currently, the Chilean regulator is exploring the possibility of using blockchain in bonds.
As an example of a CBDC without a blockchain, he called the digital currency of Uruguay.
Recall that its own digital currency is preparing to issue the central bank of China and North Korea . The CBDC is also considering launching a CBDC .
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