The Central Reserve Bank of Peru (CRBP) has published a document on the possibilities of its own digital currency, its design and the benefits of introducing it into the country’s payment system.

The report was compiled with the assistance of the International Monetary Fund (IMF). The document of the central bank states that the introduction of the digital Peruvian salt will reduce transaction costs, increase the access of the local population to existing payment systems and make banking services more accessible.

The researchers noted that about half of the country’s population does not have bank accounts. Three-quarters of the unbanked live in “non-poor” households, but almost 79% of them have no savings. Most of these people live in cities and almost all work informally.

The Central Bank of Peru said that a CBDC could be created for settlements between banks and financial institutions (wholesale digital salt) or for retail payments made by individuals. Of greatest interest to the central bank is the retail digital currency. In this regard, the design of the state stablecoin will be multi-level: the private sector will interact with the Central Bank through commercial banks.

The central bank noted that if the launch of CBDC takes place, it will not compete with existing digital payment providers. When introduced into the country’s payment system, the state stablecoin should provide instant payments with little or no commission. The digital salt should be versatile and easy to use, and able to function both online and offline.

The digital currency of the Central Bank must be compatible with bank accounts and electronic wallets. In addition, it should be used for transactions between individuals (P2P), between individuals and enterprises (P2B), as well as between the state and individuals. This will allow the population to access digital payments, the authors of the document are sure.

Recall that the Central Bank of Peru began to develop its own digital currency in 2021, in cooperation with the central banks of India and Singapore. Last year, BCRP criticized cryptocurrencies for their energy consumption and possible environmental impact.