The Central Bank of Peru The Central Reserve Bank of Peru is planning to develop a central bank digital currency (CBDC) like other economies in the world. The announcement was announced by its president Julio Velarde, who stated that the currency will be mainly used for payment. However, Velarde also admitted that due to the current market uncertainty, this is not the best time to showcase the currency.

Peru joins the CBDC trend

The Governor of the Reserve Bank of Peru, Julio Velarde, announced that the institution is already working on the creation of the National Central Bank Digital Currency (CBDC).this announcement It was produced during the virtual version of the 59th Annual Executive Summit last week. He stated that in a digital-based future, this currency must be created. Willard emphasized:

We have been studying digital currencies. We have carried out many projects with many central banks: cooperate with India, Singapore, Hong Kong and many central banks to consider a digital currency that will become popular in the future.

Although this digital currency is still in the early stages of development, according to Velarde, this puts it on the same level as other currencies developed by economies of similar scale. However, Mexico and Brazil are often referred to as the progress of CBDC in the region.

Payment-centric

Peru’s cryptocurrency design seems to be focused on helping the payment sector, which, according to Velarde, will be completely different in eight years. Through this work, the country seeks to make continuous progress in this field like other economies. However, Velard admitted that Peru still lacks the resources needed to complete the project, otherwise it will face risks to the Peruvian economy after the completion of the project. The central bank governor insisted that now is not the ideal time to achieve this goal.

Given that Peru is not a country particularly friendly to cryptocurrencies, this news surprised many economic participants in the country. Given that there is no legal framework to support cryptocurrency (or CBDC) activities in its economy, the country is still in the initial stage of embracing cryptocurrency.

The adoption of CBDC is something that countries like China are already doing doing, Although a country like El Salvador decided to go through a completely different process, use Bitcoin is used as legal tender.

What do you think of Peru starting to develop its own CBDC? Tell us in the comments section below.

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