The Central Reserve Bank of Peru (CRBP) has released a comprehensive report detailing the potential of its own digital currency and the advantages it could bring to the country’s payment system.
With the assistance of the International Monetary Fund (IMF), the report highlights the benefits of a digital Peruvian salt, including reduced transaction costs, increased access to existing payment systems, and improved banking services.
It is worth noting that nearly half of the country’s population does not have bank accounts, with three-quarters of the unbanked living in non-poor households.
Furthermore, 79% of them have no savings, and many of these individuals live in cities and work informally.
The CRBP proposes that a CBDC could be created for settlements between banks and financial institutions (wholesale digital salt) or for retail payments made by individuals.
The central bank is particularly interested in the latter and envisions a multi-level design that involves interaction between the private sector and the central bank through commercial banks.
Importantly, the CRBP has indicated that the introduction of a CBDC will not compete with existing digital payment providers.
If launched, the state stablecoin should provide instant payments with little or no commission and be versatile and easy to use.
It should also function both online and offline and be compatible with bank accounts and electronic wallets.
The CRBP envisions the digital currency being used for transactions between individuals (P2P), between individuals and enterprises (P2B), as well as between the state and individuals.
By facilitating digital payments, the authors of the report believe that the population will have greater access to financial services.
It is worth noting that the CRBP began developing its own digital currency in collaboration with the central banks of India and Singapore in 2021.
Last year, the CRBP expressed concern about the environmental impact of cryptocurrencies and criticized their energy consumption.