Peru’s Central Bank is collaborating with India and Singapore to create a cryptocurrency
Representatives from the Central Bank of Peru (BCRP) met with the Central Bank of India and Singapore on the development of the digital currency. The country’s main regulator says it wants to move with the times and make full use of innovative technologies.
It should be noted that Peru is not the first country that intends to introduce its electronic money. Brazil, Mexico, and a number of European countries are already working on it. The Central Bank wants to change the payment system and improve it. Reformation will take 8 years and the country will have a new payment system. It will be significantly different from the existing ones, first of all, by its flexibility and universality.
Peru’s president stresses that the country is not interested in being the first in this field, but does not want to lag behind other states that are actively working on their own digital currency. Now the regulator is studying the mechanisms of crypto, as well as getting acquainted with the activities of companies and trading platforms that interact with electronic money. The first step of the Central Bank is to create clear requirements and regulations that will control the activities of digital currency.
It should be noted that the issue of electronic money is considered extremely important for Peru. This is evidenced by the fact that the government has focused on it, rather than on the problems of the pandemic and economic crisis, which are extremely relevant today.
Regulators are actively studying the topic, analyzing the volume of crypto transactions in the country. For example, during the spring quarantine restrictions last year, Latin America saw a surge in the popularity of BTC. During that period, Peru saw a 30% increase in bitcoin transactions. The government is advising the Central Bank to study the issue of digital currency as quickly as possible in order to curb the use of electronic money for illegal purposes. Based on the information gathered, legislative mechanisms will be adopted. Previously, Peruvian authorities did not have a clear position on a blockchain, but they were loyal to its use. In 2020, the government noted that it would promote the development of the sector. The main goal is to create a legal and structured system that will help reduce corruption and prevent illegal mechanisms. For now, however, only preparations are underway, and specialists will start developing it later. For this purpose, the bank plans to cooperate with colleagues from India and Singapore.
It should be noted that Peru’s economy was significantly affected during the pandemic, but now there is a positive trend.