Central Bank of Peru Will Develop a Digital Currency

Central Bank of Peru Will Develop a Digital Currency

The Central Reserve Bank of Peru, the Peruvian central bank, is planning to develop a central bank digital currency (CBDC) like other economies of the world. The announcement was made by its president, Julio Velarde, who stated that the currency would be designed for use primarily in payments. However, Velarde also acknowledged this was not the best time to present the currency due to the current uncertainty in markets. Peru to Hop on CBDC Bandwagon

Julio Velarde, president of the Reserve Bank of Peru, announced the institution was already working on the creation of a national central bank digital currency (CBDC). The announcement was made last week during the 59th virtual edition of the annual executive summit. He stated that the creation of such a currency is a must in a digitally based future. Velarde stressed:

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 the one that will prevail in the future.

While this digital currency is yet in its early stages of development, according to Velarde this puts it in the same class as others being developed by economies of similar size. However, Mexico and Brazil are usually pointed to for CBDC advancements in the area. Payment Focused

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. With this work, the country seeks to keep advancing in the field as other economies are doing. 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. The head of the central bank maintains this is not the ideal time to pursue this goal.

The announcement surprised many economic actors in the country, given that Peru is not known for being a nation especially friendly towards cryptocurrencies. The country is still in its initial stages of embracing crypto, given that there is no legal framework to support cryptocurrency (or CBDC) activity in its economy.

Adopting a CBDC is something that countries like China are already doing, while countries like El Salvador decided to go through a radically different process, adopting Bitcoin as legal tender. Tags in this story CBDC, Central Bank, China, El Salvador, julio velarde, Peru

What do you think about Peru starting the development of its own CBDC? Tell us in the comments section below. Finiko Founder Doronin Offers to Testify Against 44 Accomplices at Crypto Pyramid NEWS | 17 hours ago Bitcoin Black Friday: Bitpay Reveals List of Merchants Offering Discounts and Special Promotions NEWS | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleElectric Coin Company Reveals Zcash Network to Transition to Proof-of-Stake in 3 Years Next articleThird-Generation Blockchains Will Pick Up the Defi Slack Left by Ethereum Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTwitter Sets up Dedicated Team to Focus on Cryptocurrency and Decentralized Apps

Twitter has set up a team to focus on "crypto, blockchains, and other decentralized technologies — including and going beyond cryptocurrencies.” Initially, the team will explore how it can "support the growing interest among creators to use decentralized apps to ... read more.Finiko Fugitives Suspected of Moving 750 BTC From Crypto Pyramid’s Wallet SEC Rejects Vaneck Bitcoin Spot Market ETF Over Price Manipulation Concerns Over 3 Million Customers Can Earn Bitcoin Points Dining at 500 Restaurants via Landry"s Rewards Program Bank of England Governor Warns Crypto Is Providing Means of Payment for Criminals