Central Reserve Bank of Peru wishes to issue its own cryptocurrency
In an emerging economy like Peru, the incentive is to help in the financial inclusion of the unbanked population
Within the framework of the cryptographic ecosystem and the rise of electronic means of payment, traditional banks have been forced to weigh the possible issuance of a digital currency or Central Bank Digital Currency (CBDC) to guarantee financial stability.
Therefore, the Central Reserve Bank of Peru (BCRP) issued a report on the subject and joins the move led by Uruguay in Latin America whose Central Bank put into circulation in November 2017 a cryptocurrency called e-Peso.
The authors of the publication analyze the possibilities of the BCRP issuing a CBDC, as well as its possible impacts on the local financial system.
In developed economies, the incentive to create a CBDC is to act preventively before seeing the use of cash limited. Another measure is to control operational risks and distortions of monopoly power that threaten the stability of the payment system.
In the case of Peru, a CBDC would compete in one way or another with the other means of private electronic payments already existing in the country.
The Inca nation aims to help with the issuance of the cryptoactive to the financial inclusion of that segment of the unbanked population, CBDC constituting a kind of cash replacement.
L.Sáenz
Source: Diario Bitcoin
