Peru to partner with India, HK and Singapore central banks on a CBDC

The president of Peru's central bank has indicated that the nation will be joining forces with India, Singapore, and Hong Kong to develop its own central bank digital currency.

Peru to partner with India, HK and Singapore central banks on a CBDC

Julio Velarde, The President of the Central Reserve Bank of Peru announced that his nation will be entering the global race to develop a Central Bank Digital Currency (CBDC).

At the Annual Conference of Executives (CADE) with business leaders in Lima on Nov. 16 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 expressed 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, "But we would rather not fall behind." We are at least at the same level or maybe even further ahead than similarly-sized nations, albeit behind Brazil and Mexico."

According to Atlantic Council, 87 nations (representing more than 90% of global GDP) are presently researching CBDC, and seven have launched one. Nearly, in May 2020, just 35 nations 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 at some point before 2023, and the Bahamas as of now has a Sand Dollar SBDC.

Peru's upcoming CBDC development partner, the Reserve Bank of India plans to launch a trial implementation of the digital rupee before the end of the year, but it's likewise taking its time to ensure the rollout goes smoothly.

"We are being extremely careful about it because it's a totally new product, not just for RBI but globally." Governor of the Reserve Bank of India Shaktikanta das told CNBC in August.

Hing kong's Monetary Authority (HKMA) keeps on exploring the chance of presenting a digital Hong Kong dollar(e-HKD) in a bid to capitalize on potential benefits for retail trading across the city's cross-border markets.

The Monetary Authority of Singapore (MAS) has likewise shared plans for a privately-developed retail SBDC under its "Project Orchid initiative." They are all racing to catch up with China, be that as it may, which presently has processed a total of 62 billion digital yuan as per PBoC's digital currency head.

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