Peru’s Central Bank Initiates CBDC Pilot with Viettel Peru
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Loading... - Frances Leblanc
- 30 Jul 2024
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This July, Peru’s Central Reserve Bank (BCRP) announced a partnership with Viettel Peru to launch a pilot for a Central Bank Digital Currency (CBDC). This collaboration marks a significant step toward integrating digital currency into Peru’s financial system and modernizing its financial infrastructure.
CBDC Pilot Program to Kick Off in Peru
The pilot program, set to last one year, will involve collaboration with various stakeholders to ensure the system design and functionality align with the BCRP’s requirements. This collaborative approach aims to enhance user adoption and address potential barriers to entry.
According to a BCRP announcement, "Following a selection process conducted under Circular No. 0011-2024-BCRP, the management of the BCRP issued Resolution No. 0009-2024-BCRP, which establishes that the Participant of the First Digital Money Pilot is the company Viettel Perú S.A.C."
BCRP’s 2023 Report on Digital Currency
In March 2023, the Central Reserve Bank published a report exploring the adoption of a CBDC. The report highlighted that digital currency is a liability of the central bank that the public uses as money and can complement existing payment instruments, including banknotes and coins issued by the BCRP.
Peru faces significant challenges in transitioning from a cash-based economy to a digital one, including low financial inclusion and high payment service costs. The report emphasized the importance of addressing these challenges to achieve policy milestones, such as increasing the use of digital payments among the unbanked population and building greater trust in payment systems.
To address these challenges, the BCRP is considering three options:
- Maintaining the status quo.
- Improving access and interoperability of existing payment systems.
- Introducing a CBDC.
The pilot with Viettel Peru is expected to provide valuable insights and data to inform the BCRP's decision on which path to pursue to enhance Peru’s financial ecosystem.
