on July 17, the Central Reserve Bank of Peru partnered with Viettel Peru to launch a pilot for the central bank’s digital currency (CBDC).
According to a recent announcement by the Central Reserve Bank of Peru (BCRP), Viettel Peru S.A.C. will be the first participant in this year’s pilot, integrating the digital currency into the financial system and modernizing the country’s financial infrastructure.
CBDC pilot program begins in Peru
The pilot will involve working with various stakeholders to ensure that the system’s design and functionality are consistent with BCRP requirements. The approach aims to increase user acceptance and eliminate potential barriers to entry.
BCRP’s 2023 digital currency report
March 2023. The Central Reserve Bank released a report examining CBDC adoption. The report emphasized that the currency is a digital commitment of the central bank, which the public uses as money.
“The CBDC can complement the set of existing payment instruments, including banknotes and coins issued by the BCRP,” it said – the report stated.
Peru faces major challenges in the transition from a cash-based to a digital economy, including low financial inclusion and the high cost of payment services.
The report stresses that addressing the challenges is critical to achieving key policy elements, such as increasing the use of digital payments among the unbanked population and building greater trust in payment systems.
The BCRP is considering three options to address these challenges: maintaining the status quo, improving access and interoperability of existing payment systems, and introducing CBDCs. “Option 1 is not feasible, while options 2 and 3 are complementary policies,” the report concluded.
The report stresses that the introduction of digital currency is expected to improve the payments landscape in Peru with features such as instant and final payments, universal accessibility and multiple use cases.
