It kills your chinchilla ... that's what happens.
I've had the same question ask a few times myself ... glad you advised against it.
Rawhide bones for dogs are made from an animal (usually a pig or a cow) ... any meat or meat byproduct can kill a chinchilla because they can not properly digest it, this will often cause a blockage of the chin's digestive tract.
Rawhide is even bad for dogs ... once chewed and consumed ... it absorbs the liquids in the stomach and swells, blocking the bowels. This happened to my Rottweiler ... he ate his rawhide bone, then an hour or so later, he started vomiting what looked like dumplings ...
... I though someone had poisoned him, so I rushed him to the vet ... we were lucky ... all of it came up ... those x-rays cost me over $100 + a vet visit charge of $45 ... the money didn't bother me ... the thought of loosing my rottie did. The vet told me he has seen lots of this and it usually did not turn out as good ... most of the time it led to surgery and/or death. This is on a big dog ... imagine what it would do to a chinchilla.
Jo Ann