Peru begins its digital revolution and thinks about a CBDC

A CBDC (Central Bank Digital Currency) is an electronic national currency. In view of the many advantages of electronic money and in the face of the crypto boom, more and more countries are considering the creation of a CBDC. The latest example comes from Peru …

Peru is working on the creation of a CBDC

Peru’s central bank president Julio Velarde said last week that Peru is working on creating electronic money. The primary objective of this new currency will relate to payments.

As a reminder, CBDCs are different from cryptocurrencies. Where most cryptos are developed by private companies CBDCs are managed by central banks .

The project of a CBDC in Peru is still in its infancy and little information has leaked out. For Julio Velarde, the idea is to provide Peru with a CBDC in order to meet the challenges of the future. Thus, in the same speech, Julio Velarde spoke of the technological change currently underway . For him, the payment systems within 10 years will have “nothing to do” with the current means. Faced with the evolution of an entire ecosystem, Peru does not want to be left behind!

Many countries are turning to CBDCs for fear of being left behind!

Digital currency and blockchain are now seen by many as part of the ‘sense of history’. Yet cryptos are greeted with suspicion by many governments, fearful of losing their sovereignty. Also, the crypto boom is acting as a catalyst in the development of CBDCs .

For Julio Velarde, the goal for Peru is not to be a pioneer of the CBDCs. As a reminder, China is currently leading the CBDC race with its digital Yuan already being tested in the country. Even if this would be the objective, Julio Velarde recalled that Peru has neither the resources nor the conjuncture to quickly set up a CBDC. Peru is also not known as a very crypto-friendly country.

The idea is therefore above all that Peru does not fall behind on the subject of CBDCs and begins its digital transformation .

For the moment, the development of the CBDCs is still hampered by the absence of an adequate legal framework . Once this question is settled, there is no doubt that we will see national electronic currencies flourish everywhere! What about cryptos at this time? The future will tell, but given the differences (technological and philosophical) between these two types of assets, it is a safe bet for a cohabitation