Peru to launch its MNBC in partnership with Singapore, Hong Kong and India

Peru to launch its own MNBC

The frenzy towards central bank digital currencies continues. While many MNBC projects are under development, such as in Nigeria, Peru has expressed interest in establishing a digital version of its national currency, the Sol (PEN).

Julio Velarde, the president of the Central Bank of Peru, however wanted to be cautious and reasonable on the subject. First, Peru will not be the first state to put an MNBC into circulation. Second, the country does not have the resources to work on the subject alone.

This is the reason why Lima will join forces with Singapore, India and Hong Kong for the development of its own MNBC. Indeed, these three countries or territories have more advanced experiments than Peru. One thinks in particular of Singapore, which is a spearhead of the Dunbar project.

Peru’s ambition is to be one of the first, if not the first, Latin American country to launch its own digital currency. To do this, it will have to face competition from Mexico and Brazil.

👉 To go further – Central bank digital currencies (MNBC) – What are they and how do they work?

MNBC projects multiply around the world

If the Peruvian ambition is new, the MNBCs are on the other hand in strong development all over the world. One thinks of course of the digital euro project of the European Central Bank (ECB) or the future digital pound sterling of the Bank of England.

In total, according to the Atlantic Council, 87 countries or territories, representing more than 90% of the world’s gross domestic product, have at least started a consultation on the subject. For comparison, there were only 35 states in May 2020.

Seven countries have officially launched an MNBC: six in the Caribbean, including the Bahamas, and Nigeria with its eNaira. Nonetheless, arguably the most anticipated central bank digital currency is the digital yuan in China. It goes without saying that the recent purge of Bitcoin (BTC) mining in Chinese provinces is partly linked to this project.

For Peru, as for other countries, the launch of an MNBC program is mainly seen as a way to stay in the race against other countries.

Of course, without saying it officially, it is also a response to cryptocurrencies and to El Salvador, which remains to this day the only country to have made BTC a currency by legal tender.

👉 To go further – China’s digital yuan: the major asset of the new great economic power

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About the author: Benjamin Allouch

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Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. I am now an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.

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