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Peru will issue a digital currency: what is it for and how will this currency be used?

U.S.A.Peru will issue a digital currency: what is it...

Digital currency: Peru will join this international trend

President of the Central Reserve Bank of Peru (BCR, Julio Velardeworks in project of digital currency, According to comments last week in the CADE trading forum. During the meeting the banker said that “We are in several projects with several central banks, we are working with India, with Singapore and with many central banks, thinking about a digital currency that will be implemented in the future”,

Velarde’s announcement was joined by new members of the bank’s central board, Roxana Barrantes and Jose Tavara, who demanded one. Greater use of digital payment methods, He said in an interview that Tavara was also interested in a platform similar to the one developed by his counterparts in Brazil.

What the BCR chief said left many questions in the air. Spoke with Jose Ravins, Founder of APEIF, Peruvian Association for Financial Education and Inclusion infobae To explain what a digital currency is and the benefits its implementation can bring.

“I see this as an absolutely positive fact that as a country we are going to have a kind of catchup to keep up with the trends of the digital economy and new forms of payment”, commented. He said it is important that tie-ups are made with Asian countries to have a joint currency.

around the world, in Europe Eurodigital has already been talked about seriously, that for the European community it will be a currency that will coexist or that can be pegged to a physical currency, but it will bring many changes, experts say. me too China They are already testing the digital yuan.

They are known as Central Bank Digital Currency (CBDC) and are basically tokens that are meant to be maintained by a central body.

From the words of Velarde, the experts conclude that initially there must be a progressive migration towards a digital currency for the economy to coexist. He indicated that central banks have realized they must keep up with the times, as people have turned to mass adoption of decentralized finance and the generation of instruments of transfer value not issued by a central body.

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What are the benefits of this type of currency? Ravines explains that one of the benefits of this digital currency is the issue of remittances and money transfers. Another advantage is that this money is traceable, which will save some people from black practices and corruption. “There will be no money that does not have traceability”, He mentioned.

adopt slowly

Ravines does not believe that digital currencies become increasingly used in Peru, at least in South America. ,In Peru I don’t see it before 2030, Because we are only adopting the rules for the crowdfunding platform as well as dealing with internal issues. Instead of moving forward, and indeed moving forward as a country, the sluggishness we keep is going to cause us to adopt late”, Held.

He added that the fact that there is a central regulator behind this digital currency gives confidence that they control the instruments of monetary policy, and are also able to mint and issue new currencies. They are considered deflationary assets, with regulators recognizing the benefits of blockchain, and they will gradually gain more prominence in the market. “Eventually digital currencies will prevail across the planet”, exact.

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