Peru is currently in the research phase, but it will likely soon enter the pilot phase as it has begun to sign contracts with companies to develop a CBDC pilot.

CBDC History and Development

In 2021, the Central Reserve Bank of Peru requested technical assistance from the International Monetary Fund and used this assistance to promote its research efforts.

In March 2023, the Central Reserve Bank of Peru released two documents on CBDC development. In the first document, the central bank argued that a CBDC could help people without bank accounts while complementing existing digital payments options. However, it also argued a CBDC could be used to reduce the use of cash, lower dollarization, and introduce programmable payments. At the same time, the central bank acknowledged that a CBDC could destabilize the financial system, lead to bank runs, pose cyber risks, and hurt the central bank’s reputation. The second document featured a questionnaire asking people and businesses about their views on CBDCs and the market.

In November 2023, the Internal Monetary Fund published a report on CBDC stakeholder engagement in Peru. The report said the banking sector was receptive to a “properly designed CBDC [that] can help address remaining pain points in Peru and may assist in deepening financial inclusion.” The Internal Monetary Fund ultimately recommended that the Central Reserve maintain its CBDC development, continue outreach, and expand its work to the national level.

In July 2024, the Central Reserve Bank of Peru announced it had signed its first contract with the company Viettel Peru to begin work on a CBDC pilot.

Human Rights and Civil Liberties Concerns

Peru earned a 70 out of 100 in Freedom House’s 2023 Freedom in the World report. As Freedom House noted in the report, corruption is a major issue for Peru. The issuance or adoption of a CBDC in Peru could worsen this issue.

“Government corruption remains a critical problem in Peru,” according to Freedom House. Despite some reforms, the U.S. State Department reported that “Citizens continued to view corruption as a pervasive problem in all branches of national, regional, and local governments.” In particular, there “were widespread allegations of corruption in public procurement and in public-private partnerships.” The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.