Peru considering CBDC to improve payment system: Former IMF adviser

The Central Reserve Bank of Peru (CRBP) has released a paper it said would be the first in a series investigating the need, design and timing of a digital currency for the Central Bank of Peru. report John Kiff, Research Director, Sovereign Official Digital Association (SODA), said: His report concentrates on issues related to retail CBDC.

Peru’s Competing Payment System Status Quo Unsustainable, CBRP I have writtenHowever, the introduction of a CBDC combined with new policies to improve access and interoperability with existing systems can help central banks overcome barriers to financial inclusion and reduce transaction costs. According to the report:

“The purpose of the CBDC in the framework of the Peruvian payment system is to provide the unbanked with access to digital payments. Therefore, it is important to know their characteristics in order to prepare an implementation strategy. .”

Peru has serious obstacles to overcome. About half of the country’s population does not have a bank account. Her three-quarters of unbanked people live in “not poor” households, but nearly 79% of them have no savings. They live mainly in urban areas and mostly work informally. Almost everyone without a bank account has a mobile phone.

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Nevertheless, the use of digital payments in Peru has increased five-fold since 2015, says the report.

En el Perú, han ocurrido tres eventos que dan luces de hacia donde va el sistema financiero peruano de la mano de blockchain.⛓️

Avro :

1⃣ El Banco Central de Reserva del Perú publicó el primer documento “CBDC : Impulsando los pagos digitales en el Perú”

— Bride (, ) | Lens (@blid_one) April 3, 2023

The current report marks the end of the first of five steps in the potential production of CBDC, the report said. No timeline for CBDC development was mentioned. CBRP too release A 25-question survey of potential users, due April 30th.

Peru received technical assistance in the preparation of the report from the International Monetary Fund, with which an agreement was reached in May 2021. CBRP President Julio Velarde announced in November 2021 that the country will work with India, Singapore and Hong Kong to develop a CBDC.

SODA is a technology agnostic company providing advisory services for the Central Banking, Digital Finance and Web3 industries. Kif is a former IMF section expert.

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