Peru will partner with India, Hong Kong and Singapore for a CBDC
Peru will partner with India
At the Annual Conference of Executives (CADE) with business leaders in Lima, last November 16, the president of the central bank of Peru said: “I think that the payment system that we will have in eight years in the world will be completely different from the current one. . The financial system is also likely to be very different. ”Velarde stated that Peru will collaborate with the central banks of the most advanced countries in their development of CBDCs including India, Singapore and Hong Kong. “We won't be first, because we don't have the resources to be first and take those risks,” said Velarde, “But we don't want to be left behind. We are at least at the same level or perhaps even further ahead than countries of similar size, albeit behind Mexico and Brazil ".
According to the Atlantic Council, 87 countries (representing over 90% of global GDP) are now researching a CBDC and seven have launched one. Comparatively, in May 2020, only 35 countries were considering developing a CBDC. Although it does not have a CBDC, El Salvador's adoption of bitcoin as legal tender on September 7 has placed a renewed focus on digital assets in the region.
Regarding Peru's next CBDC development partner, the Reserve Bank of India plans to launch a trial rupee rupee implementation before the end of the year, but is also taking its time to ensure the rollout goes smoothly.
The Hong Kong Monetary Authority continues to explore the possibility of introducing a digital Hong Kong dollar in an effort to capitalize on the potential benefits for retail trade in the city's cross-border markets. Finally, the Monetary Authority of Singapore also shared plans for a privately developed retail CBDC as part of its "Project Orchid initiative". However, they are all racing to catch up with China, which has now processed a total of 62 billion digital yuan according to the PBoC digital currency head.
Peru to partner with India, HK and Singapore central banks on a CBDC
The president of the Central Reserve Bank of Peru, Julio Velarde, announced that his country will be entering the global race to develop a central bank digital currency (CBDC).
At the Annual Conference of Executives with business leaders in Lima on Tuesday, he said:
“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 stated that Peru will partner with the central banks of countries more advanced in their development of CBDCs including India, Singapore and Hong Kong. A CBDC is a digital form of a country’s fiat currency, issued and controlled by the respective nation’s central bank.
“We won’t be the first, because we don’t have the resources to be first and face those risks,” Velarde said, adding, “But we don’t want to fall behind. We are at least at the same level or maybe even further ahead than similarly-sized countries, although behind Mexico and Brazil.”
According to Atlantic Council, 87 countries (representing more than 90% of global gross domestic product) are now researching a CBDC, and seven have launched one. Comparatively, in May 2020, only 35 countries were considering developing a CBDC.
Although it doesn’t have a CBDC, El Salvador’s adoption of Bitcoin as a legal tender on Sept. 7 has put a renewed focus on digital assets in the region.
Mexico and Brazil are planning to implement CBDCs sometime before 2023, and the Bahamas already has a Sand Dollar CBDC.
As for Peru’s upcoming CBDC development partners, the Reserve Bank of India plans to launch a trial implementation of the digital rupee before the end of the year, but it is also taking its time to ensure the rollout goes smoothly.
“We are being extremely careful about it because it’s a completely new product, not just for RBI but globally,” Reserve Bank of India Governor Shaktikanta Das told CNBC in August.
Related: US is not moving fast enough to develop a CBDC, says former CFTC chair
Hong Kong’s Monetary Authority continues to explore the possibility of introducing a digital Hong Kong dollar in a bid to capitalize on potential benefits for retail trading across the city’s cross-border markets.
The Monetary Authority of Singapore has also shared plans for a privately developed retail CBDC under its “Project Orchid initiative.” They are all racing to catch up with China, however, which now has processed a total of 62 billion digital yuan, according to the head of digital currency at the People’s Bank of China.
