A Central Bank Digital Currency (CBDC) is sovereign money issued by the central bank in digital format, which can be held in accounts or through representations called tokens (digital representation with value). The CBDC can be created for payments between financial institutions (wholesale) or for use by individuals and businesses (retail), the latter being the field that generates the greatest interest, especially in emerging countries. In this regard, the design of a CBDC may imply a different allocation of roles and responsibilities between the central bank and the private sector.

Many central banks are evaluating the issuance of a CBDC being the main motivations for emerging countries the promotion of financial inclusion as well as the efficiency and security of the domestic Payment Systems.

To advance in the study of the possible issuance of a CBDC, the Central Reserve Bank of Peru (BCRP) requested Technical Assistance from the International Monetary Fund (IMF), which was agreed in May 2021. The Technical Assistance has facilitated progress during the research phase.

The document "CBDC: Promoting digital payments in Peru" is the first in a series referring to the work being carried out by the BCRP on the possible implementation of a CBDC with the aim of promoting access and use of digital payments, as well as strengthening the monetary and financial stability, and the security and efficiency of Payment Systems.

A survey is issued with the publication of the document to learn the views of the stakeholders, including market agents, on key aspects contained in the publication.

Subsequently, the input from surveys will be utilized to carry out a next phase of exploration, including a more targeted assessment and testing (“Innovation Challenges”) of specific aspects of digital payments, including CBDC. This next phase will convene and benefit from the views of technology providers, regulators, and experts from various fields.

The International Monetary Fund provided Technical Assistance in 2023, to contribute to the investigation into the possible implementation of a CBDC in Peru, where market agents participated. The results of said Technical Assistance are reflected in the following documents published on November 3, 2023:

• Peru: Central Bank Digital Currency Stakeholder Engagement
  High Level Summary Technical Assistance Report No. 2023/016
• Peru: Technical Assistance Report-Central Bank Digital Currency (CBDC) Stakeholder Engagement
  Country Report No. 2023/358