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The Central Bank of Peru plans to launch a digital currency By EFE

by souhaib
November 17, 2021
in Forex
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© Reuters. The Central Bank of Peru plans to launch a digital currency

Lima, Nov 17 (.) .- The Central Reserve Bank of Peru (BCRP) is working on launching a digital currency to adapt to financial systems and payment models that will set the standard within eight or ten years, as anticipated by its president, Julio Velarde.

During his speech this Wednesday at the Annual Conference of Executives (CADE) of Peru, Velarde pointed out that the institution he presides works together with other central banks of Hong Kong, Singapore and India in “a digital currency that is going to be imposed in the future.” .

“We are not going to be the first because we do not have the resources to be the first and face the risks, but at least we are not going to be left behind,” Velarde said.

“At least we are at the same level as our peers of the same size, but we are more behind perhaps than Mexico and Brazil and more than several European countries,” he added.

Likewise, the president of the BCRP pointed out that “the payment system that we are going to have in the world in 8 or 10 years is going to be completely different from the current one.”

“Even part of the debate that occurs many times, does not understand that even the financial system is probably quite different,” he added.

The head of the Central Bank of Peru also indicated that his institution has other projects that at the moment he prefers to have them in the portfolio because, “it is probably not the best scenario to raise them in the face of so much uncertainty.”

Unlike a cryptocurrency, digital currencies are issued only by central banks and have their backing, so they guarantee greater stability and less volatility in their price.

Last week, the Central Bank revised up the growth forecasts of the Peruvian economy for 2021, from 11.9% to 13.2%, which would represent the largest percentage increase in Latin America, and which would offset the recession of 11, 1% suffered in 2020, one of the most serious in the region.

With these figures, Peru’s GDP will recover its pre-pandemic level with the challenge of returning to the growth path of 4.8%, the annual average that the Peruvian economy had between 2001 and 2019.

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



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