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Key facts:
The bill was revived after being arrested in October last, by the protests.The sector FinTech asks the government not to repeat the mistakes of other countries.The government of Chile reported on April 13 that the bill FinTech will be introduced to the Congress by the middle of this year, a story that celebrates the finance sector-financial, which sees regulation as an opportunity and a boost to ensure their growth, especially at the present when the crisis caused by the pandemic coronavirus is forcing the world to turn to the digital ecosystem to transform the society and continue generating income.A year ago, the Commission of the Financial Market in Chile, made a call to the actors of the industry is FinTech of the country to form a table of work with the objective of preparing a draft law to regulate the sector.After several months, the work that they had started, he was paralyzed product of social explosion that, from October of 2019 and during several months, sank to the chilean population in the uncertainty and bewilderment.Mauricio Benitez, director of Corporate Business Development of BDO Chile. Image taken from bdo.cl.”Since then we were in waiting, until now, when the government announced that the project will come to Congress at mid-year, which is within a very short time”, he pointed out to Breaking News, Mauricio Benitez, director of Corporate Business Development of BDO Chile.FinteChile, the Association that brings together 70 of the 130 companies in FinTech that exist in the country, along with BDO Chile, have been working together with the aim of promoting the development of the industry, guiding the processes that will allow companies to self-regulate and cope in a better way the legal frame regulatory.
We are expectant of to see how come the bill. But, first of all, we think that the regulation in these moments is an opportunity, especially because at times complex as those that we are living in the traditional banking system can realize they must work with technology companies financial. Even, that must occur in order for an integration between FinTech and the traditional banking system. We must not forget that the financial crisis of 2008-2009 made that he was born the industry, FinTech is presented as a solution for the world. For this reason, and other reasons, today more than ever we see that in Chile the FinTech should be a sector of prominence in the financial industry.Mauricio Benitez, director of Business Development at BDO Chile.
Challenges and opportunities
Angel Sierra, executive director of the Association FinteChile commented to the local media that is required, as before, that the FinTech are officially recognized as financial providers to support the government and to the society in such complex situations as that currently live by the consequences generated by the pandemic.Mauricio Benitez agrees with this idea and believes that it is time to evolve or die, because the world is bound to boost the digital, remote services, artificial intelligence and the cryptocurrencies.
We must consider that 10 years ago we have been developing the technology industry to financial, and we have already built solutions that are indeed a relief for companies, which by this means can be found to access funding and leverage for future projects. This is why we believe that this moment represents an opportunity to be the solution which require companies that, by the crisis, are not going to be walking very well, as there are many companies that are going to fall, they are going to break. All central banks are injecting capital into the markets because there is a lack of liquidity, but we must also keep in mind that we have technological solutions, which represent a tool so effective that the production costs of many industries will decrease. We can raise up together in the technology and reap the benefits of it to give a boost to the economy.Mauricio Benitez, director of Business Development at BDO Chile.
On the other hand, Angel Sierra explained that the guild FinTech Chile is the expectation with respect to three elements. In the first place, they expect the law to be treated with urgency, and maximum speed, so that Chile can capitalize as soon as possible the democratization of finance with the use of the technology.In the second place, to aspire that the chilean government does not repeat the mistakes of other countries with the implementation of their respective policies in relation to FinTech, which ended up being a rules restrictive that it inhibits innovation in the financial industry.In the third place, in the hope that the government achieves view that the law FinTech is the catalyst for Chile to become a Hub in the Financial of the region.”Today the world’s principal financial centers ” are not necessarily those that have more depth in their capital markets, but the who have put technology at the service of the people and its economy in general,” he said, according to the review journal The Third.The director of the Association FinteChile is convinced that the impact that is leaving the expansion of the coronavirus in Chile could benefit cryptocurrencies as bitcoin and services FinTech in the processing of payments, as published Breaking News recently.”At this time the criptoactivos surprised with the resilience to foreign exchange traditional for one simple reason, they are backed by technology and have a finite number. Bitcoin has 21 million (of units) and there is just. Unlike the dollar and other currencies that are a printer of banknotes that do not already know what is the underlying, the backing of those currencies,” said Sierra.Although the industry FinTech has expectations that they achieve an integration with the traditional banking, in Chile there is a history of banking has restricted the operations of startups related to cryptocurrencies.One of the more recent cases happened in January, when the Banco de Crédito e Inversiones (BCI) has closed the accounts of the platform of purchase and sale of bitcoin ChileBit. Prior to this, the cases most emblematic occurred in march of 2018 when local banks closed the accounts of the exchange houses CryptoMKT and Buda.com.