Central Reserve Bank of Peru (Peru’s central bank) plans to create a digital central bank currency (CBDC), similar to other countries. Julio Velarde was the president and stated that this currency will be used primarily for payment purposes. Velarde admitted that the moment was not the most ideal time for the currency to be presented due to market uncertainty.
Peru Joins CBDC Bandwagon
Julio Velarde is the president of Reserve Bank of Peru. He announced that the bank was currently working to create a digital currency for national central banks (CBDC). This announcement was made during the 59th annual executive summit. According to Velarde, the creation of a virtual currency was essential for a future that is digitally based. Velarde stressed:
Our team has been developing a digital currency. With several central banks in India, Singapore, Hong Kong, and many other countries, we are working on a digital currency.
Although this digital currency may still be in development stages, Velarde says it is in line with other currencies being created by similar-sized economies. But, Brazil and Mexico are frequently cited for CBDC developments in the region.
Peru’s cryptocurrency design seems to be focused on aiding the payments sector which, according to Velarde, will be radically different in an eight-year period. This work will allow the country to move forward in the same field that other economies do. However, Velarde acknowledged that Peru still lacks the necessary resources to complete this project now, or to face the risk that the completion of such a project brings to Peru’s economy. This is the wrong time, according to the chief of the central bank.
This announcement was unexpected by many economists in Peru, since Peru is not known as a nation that values cryptocurrency. It is only just beginning to embrace crypto. This is because there are no laws in place that would allow it to accept cryptocurrency or CBDC activity.
China and El Salvador have already adopted CBDCs, but El Salvador has decided to adopt Bitcoin as legal currency.
Do you have any thoughts about Peru developing its own CBDC? Leave your comments below.
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