Peru Partners With India And Singapore Central Banks For a CBDC

Peru partners with India, Singapore, and Hong Kong central banks to develop its own central bank digital currency according to the president of Peru’s central bank announcement as we are reading more in our latest cryptocurrency news today.

The president of the Central Reserve Bank of Peru Julio Velarde announced that his home country will enter the global race to develop a central bank digital currency during the Annual Conference of Executives in Lima:

“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 partners with countries that already started working on central bank digital currencies and are more advanced in their developments of a CBDC like Hong Kong, Singapore, India. A CBDC is a digital form of a country’s fiat currency and is issued and controlled by the nation’s central bank. Velarde said:

“We won’t be the first, because we don’t have the resources to be first and face those risks. 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 the Atlantic Council, 87 countries are researching CBDCs or already started working on one. Seven countries even launched one. Back in 2020, only 35 countries considered developing a CBDC. It doesn’t have a CBDC right now but El Savaldor’s adoption of BTC as a legal tender put a new focus on digital assets in the region. Mexico and Brazil plan to implement a CBDC until 2023 and the Bahamas already launched the Sand Dollar CBDC. As for Peru’s CBDC plans and partners, the Reserve Bank of India plans to launch a trial implementation of the digital rupee before the end of the year but also takes time to ensure the rollout goes well. Governor of the Reserve Bank of India Shaktikanta Das said:

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

Hong Kong’s Monetary Authority continued to explore the possibility of launching a digital Hong Kong dollar while trying to capitalize on the potential benefits for retail trading across the cross-border markets. The Monetary Authority of Singapore shared more plans to develop a retail CBDC untier the Project Orchid Initaitive. All of these countries are racing to catch up with China which already processed a total of 62 billion digital yuan as per the PBoC digital currency head.