Peru Wants To Engage With CDBC Digital Currency To Rival Crypto Impact

Peru wants to develop CDBC so that it does not lag behind in digital currency matters. (photo: doc. unsplash)

JAKARTA – Peru is joining global efforts to develop a central bank digital currency (CBDC). This was stated by Peruvian central bank President Julio Velarde on Tuesday, November 16 as policymakers around the world seek to keep pace with fast-spreading cryptocurrencies.

Speaking at a conference with business leaders in Lima, Velarde said Peru's central bank is working closely with the central banks of India, Singapore, and Hong Kong in developing the CBDC.

"We won't be first, because we don't have the resources to be first and take that risk," Velarde said, "But we don't want to fall behind. At least we are on the same level or maybe even further ahead than our peers. -a partner of the same size, albeit behind Mexico and Brazil."

Chile, a neighboring country to Peru, is also discussing launching a CBDC in 2022.

A digital currency issued by a central bank will differ from other cryptocurrencies such as bitcoin, in that it will place a direct claim on the central bank to a person or business, just like physical cash.

Regulators around the world are cracking down on digital coins, fearing the fast-growing market that has bypassed sovereign central banks and could undermine their control over the global financial system.