New technologies and financial assets could minimize costs and overcome financial obstacles.
Mario Marcel, who is the Governor of the Central Bank of Chile, held some discussions about the appropriate policies that should be considered to apply to digital currencies.
Due to new open source technologies and the accelerated advancement of mobile telephony are causing a massive and rapid adoption in society, some financial services such as savings and loans, investments, payments, among others, have been seen.
In this way, the economic forum turns out to be an example of innovation for different types of financial services. The progress of FinTech had a special interest as it identifies and agglomerates the same innovation problems that financial services are having in all areas.
The main idea is that all these new technologies can be used if users understand the potential of innovation and find the exact way to apply it to new global financial services. In this sense, policy makers who are in charge that these new technologies can engage in the economy, should be aware of these issues and thus be able to assess the risks and benefits that new business models may bring in the future.
Mario Marcel understands these challenges; it is for this reason that he has expressed that the Central Bank of Chile has among its main plans the evaluation of disruptive technologies within the framework of the 2018-2022 Strategic Plan, which carries out his office and evaluates all aspects of the new economic ecosystem.
It is for this reason that the Central Bank of that country has created two initiatives which seek to address these issues. The first one is the TechLab, and the second one is the Technological Observatory.
The last one, the Technological Observatory, is responsible for conducting research related to the new technologies connected to financial services in order to assess the risks and costs of policies that can bring the implementation of these advances, and strengthen cooperation among all the institutions responsible for using this type of technology.
The TechLab, meanwhile, is the sector that is responsible for the implementation of this technology, performing experimental stages in all economic processes. Among this tools are cryptocurrencies, Artificial Intelligence (AI), etc.
It is known that they are currently experimenting with learning techniques and blockchain technology. The TechLab results to be one of the newest sectors to operate, so it is experimenting with API technologies in just three months since it started its activities. The central conclusion discussed during the debates is the use of blockchain technology and alternative technologies as a positive, but risky option, due to the high impact it may have on the economic and political sphere. However, it was emphasized, as it is known, the knowledge and benefits that cryptocurrencies and blockchain technology can bring are important for the Central Bank of Chile.
About this aspect, members of the bank discussed the large number of migrants who arrive in Chilean lands and use national financial services to send remittances abroad, so they face high financial costs in the capital leakage.
For this reason, a possible solution would be the use of cryptocurrencies to send remittances abroad, which turns out to be cheaper and faster, but with significant risks for the shipment and receptivity of the asset.
Finally, the investigation of these areas could benefit in a positive way in citizens’ economy if the bank manages to effectively apply a platform supervised by the government.
By María Rodríguez