The Central Reserve Bank of Peru, the apex bank in Peru, is intending to create a central bank digital currency (CBDC) like that of other countries of the world. The statement was made by its President, Julio Velarde, who said that the currency would be constructed primarily for payments.
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The president of the Reserve bank of Peru stated that the instruction was already working on the creation of a central bank digital currency (CBDC).
The announcement was made last week during the 59th edition of the annual summit that was held virtually. He announced that the creation of a currency of that nature is a must in a future that is digitally based. Velarde emphasised.
“We have been working on a digital currency. We are in a lot of projects with several central banks: with India, Singapore, Hong Kong and with a lot of central banks, thinking of a digital currency that is going to be one that will prevail in the future”
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While this proposed digital currency is yet in its early stages of development, to Velarde, this places it in the same category with others being developed by economies of the same size. Although, Brazil and Mexico are the ones usually pointed to for CBDC creation in the region.
The design of Peru’s digital currency appears to be concentrated on aiding the payment sector which, according to the chair, will be radically different in eight years. With this project, the country seeks to keep progressing in the field as other countries are doing.
Peru accepting to develop a CBDC is a surprise and this might be due to the enterprising decision taken by Nigeria in establishing its digital currency. Adopting a CBDC is something that countries like China are already doing, with countries like El Salvador deciding to go through a whole different process adopting Bitcoin as a legal tender.