Peru's central bank will develop a digital currency -
Peru's central bank will develop a digital currency -
The Central Reserve Bank of Peru, the Peruvian central bank, plans to develop a digital central bank currency (CBDC), like other economies in the world. The announcement was made by its President Julio Velarde, who explained that the currency was mainly intended for payments. However, Velarde also admitted that due to the current uncertainty on the markets, this was not the best time to present the currency.
Peru rises to CBDC-Zug
Julio Velarde, President of the Reserve Bank of Peru, announced that the institution is already working on creating a digital currency of the National Central Bank (CBDC). The Announcement was made last week during the 59th virtual edition of the annual Executive Summit. He explained that the creation of such a currency was a must in a digitally based future. Velarde emphasized:
We worked on a digital currency. We are in many projects with several central banks: with India, Singapore, Hong Kong and many central banks and thinking about a digital currency that will prevail in the future.
Although this digital currency is still in an early stage of development, according to Velarde, it lends itself into the same class as others, which are developed by economies of similar size. However, Mexico and Brazil are usually mentioned for CBDC progress in this area.
Payment focus
Peru's cryptocurrency design seems to concentrate on supporting the payment sector, which, according to Velarde, will be radical in a period of eight years. With this work, the country tries to continue in this area, as other economies do. However, Velarde admitted that Peru still does not have the necessary resources in order to complete this project or to face the risk that the completion of such a project for the Peruvian economy brings with it. The head of the central bank claims that this is not the ideal time to pursue this goal.
The announcement surprised many economic players from the country because Peru is not known to be a particularly cryptocurrency -friendly nation. The country is still in the initial phase of the introduction of crypto, since there is no legal framework to support cryptocurrency (or CBDC) activities in its economy.
The introduction of a CBDC is something that already do countries like China do , while countries like El Salvador decided to go through a radically different process, adopt Bitcoin as legal means.
What do you think that Peru begins with the development of its own CBDC? Tell us in the comment area below.
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