Peru Central Bank to partner with India, HK and Singapore Counterparts to Develop Digital Currency

Peru is embracing the growing campaign to build a central bank digital currency (CBDC), central bank President Julio Velarde said Tuesday, as officials across the globe struggle to keep up with the rapid expansion of cryptocurrencies.

Velarde said at a Lima meeting with business executives that Peru’s central bank is collaborating with the central banks of India, Singapore, and Hong Kong to build a CBDC.

“We will not be the first, since we lack the means necessary to be the foremost and incur those dangers,” Velarde said, “but we do not want to lag behind.” “At the very least, we are on par with, if not ahead of, comparable sized counterparts, while we lag behind Mexico and Brazil.”

Chile, a neighboring country, is likewise planning to implement a CBDC in 2022. A central bank-issued digital currency would be distinct from existing cryptocurrencies such as bitcoin in that it would provide an individual or corporation with a direct claim on the central bank, similar to actual cash.

Regulators worldwide are tightening down on digital currency, frightened by the fast growth of a market that has evaded sovereign central banks and threatens to undermine their authority over global financial networks.