Peru is partnering with the Central Banks of India, Singapore and Hong Kong to develop its own digital central bank currency as announced by the President of the Central Bank of Peru as we read more in our latest crypto news today.
The President of the Central Bank of Peru, Julio Velarde, announced that his country will enter the global race to develop a digital central bank currency during the annual general meeting in Lima:
“I think the payment system that we will have in the world in eight years will be completely different from the current system … even the financial system will probably be completely different.”
Velarde explained that Peru is working with countries that have already started working on central bank digital currencies and are more advanced in their CBDC development, such as Hong Kong, Singapore, India. A CBDC is a digital form of a country’s fiat currency and is issued and controlled by the country’s central bank. Velarde says:
“We won’t be the first because we don’t have the resources to face these risks. But we don’t want to fall behind. We are at least on the same level or maybe even ahead of countries of a similar size, albeit behind Mexico and Brazil. “
According to the Atlantic Council, 87 countries are studying or have started working on CBDCs. Seven countries even launched one. In 2020 only 35 countries considered developing a CBDC. It doesn’t currently have a CBDC, but El Savaldor’s introduction of BTC as legal tender has put a new focus on digital assets in the area. Mexico and Brazil plan to implement the CBDC by 2023, and the Bahamas have already implemented the Sand Greenback CBDC. As for the Peruvian CBDC plans and partners, the Reserve Bank of India plans to launch a test of the digital rupee before the end of the year, but it will also take time to ensure the rollout goes well. Reserve Bank of India Governor Shaktikanta Das said:
“We are extremely careful with it because it is a brand new product, not just for RBI, but worldwide.”
The Hong Kong Monetary Authority continues to examine the possibility of introducing a Hong Kong digital dollar while trying to take advantage of the potential retail business benefits in cross-border markets. The Monetary Authority of Singapore has shared another mall development plan with the Orchid Initaitive Project. All of these countries are in a race to catch up with China, which has processed a total of 62 billion digital yuan, according to the head of digital currency PBoC.