Central Bank of Peru joins India, Singapore, and Hong Kong for CBDCs

The Central Bank of Peru is ready to push the development with the more advanced CBDCs developer central banks like India, Singapore, and Hong Kong. 

In the present time, most of the countries’ central banks are trying to develop Central Bank Digital Currency (CBDCs) to make their traditional payment services more advanced in terms of payment speed and scalability. 

On 16 November, speaking with the Annual Conference of Executives (CADE), Julio Velarde- the President of Central Reserve Bank of Peru, said that in the next eight years they will see a different payment system. He continues

“I think the payment system we are going to have eight years from now in the world is going to be completely different from the current one… Even the financial system will probably be quite different.”

Velarde said that this initiative of the modernization of the traditional payment system will happen in collaboration with the other central banks. Peru Central Bank will partner with the advanced developers CBDCs central banks like India, Singapore, and Hong Kong. 

Velarde said that we will not be the first to adopt and implement the Central Bank Digital Currency (CBDCs) because Peru’s central bank does not have much better resources and also we don’t want to be the first to face the risk. 

If we look at the report of the Atlantic Council, there are a total of 87 counties that are responsible for 90% of the global economy and all these are developing CBDCs. While in May 2020, only 35 countries were involved in CBDCs development. So we can say that adoption and understanding are increasing. 

The Central Bank of Peru is sceptical about the adoption of CBDCs but still they want to bring the CBDcs implementation at the international level but step by step to remain away from any risk. 

In August, the governor of the Peru central banks stated on CBDCs development, in an interview with CNBC. 

“We are being extremely careful about it because it’s a completely new product, not just for RBI but globally,”

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