Chile is edging closer to the potential launch of a Central Bank Digital Currency (CBDC), with strong backing from the public for the central bank's plans.

According to Criptonoticias, the Central Bank of Chile (BCCh) is taking significant steps toward the implementation of a digital peso, although no firm commitment has been made yet.

Proof-of-Concept (PoC) testing is on the horizon, signaling increasing momentum toward a digital peso rollout. The BCCh has also conducted a survey, revealing nearly 90% of respondents expressing favorable attitudes toward CBDC pilots.

The primary objective of the PoC tests will be to gain hands-on experience with digital currency-related technologies. Initial testing will be conducted internally, with external support sought only when real-world tests or the coin's rollout are imminent.

Alberto Naudon, a central bank advisor, believes that a Chilean CBDC would face limited competition from traditional cryptocurrencies like Bitcoin (BTC). Instead, stablecoins backed by large companies pose a more substantial challenge due to their potential for significant mass adoption.

This shift in CBDC policy marks a notable departure from the BCCh's previous stance. In 2022, the bank initiated and then abandoned a CBDC project, uncertain about the benefits of a digital peso rollout. However, the positive response to the recent survey has spurred the BCCh to reconsider, aligning its efforts with global trends observed among other central banks.

Chile's potential venture into the realm of CBDCs underscores the growing interest and acceptance of digital currencies worldwide. With numerous countries, including several in the LATAM region, actively exploring or preparing to launch CBDCs, Chile's move reflects broader trends shaping the future of finance.

As Chile progresses toward potential CBDC implementation, the public's support and technological advancements continue to drive momentum, ushering in a new era of digital currency adoption.