Julio Velarde, President of the Central Reserve Bank of Peru (BCRP), revealed that the central bank is working on building a CBDC in partnership with other central banks across the world. As the country faces insecurity and inflation in goods and services, the central bank is debating financial models to combat the impending catastrophe.
During the CADE 2021 business conference, Velarde revealed that the BCRP has been “working on a digital coin” and other projects with the cooperation of the central banks of India, Singapore, and other countries.
According to the BCRP President, “the payment system we will have in the world eight to ten years from now will be radically different from the current one,” and Peru’s digital coin will pave the way for the country’s future.
He declined to speak further on the other projects the central bank has been working on due to the uncertainties surrounding the issues at the present.
In Peru, the landscape surrounding cryptocurrency is hazy. The government has issued warnings, and several authorities have indicated that cryptocurrencies are “risky” and that strict laws are on the way, but no official decisions have been made.
Velarde stated that because numerous cryptocurrencies advancements are taking place, Peru’s central bank’s objective is to “give them a sort of sandbox and let them progress.” A more concrete regulation will be issued later.”
The Bank for International Settlements (BIS), a financial institution whose mission is to coordinate central banks throughout the world in the “pursuit of monetary and financial stability,” has naturally become involved in CBDC development. They have “six CBDC-related proofs of concept and prototypes” and are working on more, according to reports.
