The Central Reserve Bank of Peru (CRBP) has taken a significant step towards the potential introduction of a central bank digital currency (CBDC), publishing a report that examines the need, design, and timing of a retail CBDC.
The paper marks the end of the first of five steps required to develop a CBDC, with the report focusing on issues relating to retail CBDCs.
The current payments system in Peru is fragmented, with the country’s unbanked population struggling to access digital payments.
However, the use of digital payments has increased fivefold since 2015, and the CRBP believes the introduction of a CBDC, alongside new policies to improve access to existing systems, would help to overcome barriers to financial inclusion and lower transaction costs.
Peru faces significant challenges, with around half of the population unbanked. Three-quarters of the unbanked live in non-poor households, but almost 79% have no savings, and almost all of them work informally.
Nevertheless, the report suggested that the objective of a CBDC is to give the unbanked population access to digital payments, which is crucial for preparing an implementation strategy.
The CRBP has released a 25-question survey to potential users to gain their views, with responses required by April 30th. No timeline for the development of a CBDC has been announced.
