The politician questioned the intermediation of banks and their role in the finances of Chile. He revealed that the Chilean Central Bank has debated how it could issue a digital peso.
Former Chilean senator and current constituent Felipe Harboe recently spoke about the role of banks in the economy. He said that these institutions have unfairly criminalized cryptocurrencies, as they seek to be the only intermediaries between citizens and the possibility of investing.
The politician from the Party for Democracy (PPD) stressed that Chile must stop using the business logic of the 90s if it wants to develop faster. Harboe believes that it must become a center for digital instruments in which cryptocurrencies play a crucial role.
He does not believe that digitization happens just because someone is a bank customer. He noted that the costs associated with international bank transfers are enormous, as well as slow. He told Jazmín Jorquera, the operations manager of Buda.com, that it does not make any sense.
Harboe stated that the massification of cryptocurrencies is possible in a globalized and free world. The lawyer also explained that digitization is not just paying with credit cards or making transfers through the Internet. He said that each person must take care of their finances with digital tools, dispensing with intermediaries.
The constituent cited Mexico, with the implementation of the FinTech Law, and El Salvador, with the adoption of Bitcoin as legal tender. Regarding the Central American country, the politician said that its decision was daring but that there are still doubts about its impact on its economic development.
The Central Bank of Chile Debates on How to Issue the Digital Peso
One of the things the former senator revealed was that the Central Bank of Chile has debated how it could issue a digital peso. However, Harboe did not give details about his meetings or what the progress has been.
He explained that many countries would start to get involved with that type of currencies, just like China did with its digital yuan. Among those he mentioned are the advances that the United States and the European Union are making.
Chile would have to meet some conditions to issue a digital peso, said Harboe. It must have a digital regulatory system including data protection, draft a FinTech law, diversify digital payment methods, and promote platforms for new business models.
Additionally, the South American country must expand the areas of technological coverage. In other words, it must have an infrastructure allowing them to connect to the Internet even in the most remote part of the territory.
The representative to Congress believes that all Chilean ministries should promote digital development. Each agency must have programs to apply new solutions without a new digital department to regulate the sector.
The legislator has spoken with other representatives to Congress about a possible regulation on private cryptocurrencies such as Monero and Zcash. The debate has allowed them to define the path to take to regulate this type of crypto asset. The politician defends not only cryptocurrencies but also blockchain technology.
By Alexander Salazar
