The Central Reserve Bank of Peru has awarded its first contract for the development of its retail central bank digital currency (CBDC) trials. The winner is telecoms firm Viettel Peru. At this stage it hasn’t released additional details.
More than a year ago the central bank published a paper outlining its CBDC research. While the goals of its CBDC include improving financial inclusion and reducing the costs of cash distribution, it could prove challenging. In 2021 just under half the population had a bank account, but even amongst that group, cash usage still dominates.
The International Monetary Fund (IMF) has been helping Peru with its CBDC research and work. Its early investigations found that an aversion to fees contributed to the low levels of financial inclusion, alongside a lack of trust in digital instruments and the financial system as a whole.
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