Peru joins global effort to develop central bank digital currency (CBDC), central bank president Julio Velarde said on Tuesday, as policymakers around the world seek to keep pace with cryptocurrencies rapidly spreading.

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Speaking at a conference with business leaders in Lima, Velarde said Peru’s central bank is working with the central banks of India, Singapore and Hong Kong to develop a CBDC.

“We’re not going to be the first because we don’t have the resources to be the first and face those risks,” said Velarde, “But we don’t want to fall behind. At least we’re at same level or perhaps even further ahead than peers of similar size, albeit behind Mexico and Brazil. ”

Neighboring Chile is also the deployment of a CBDC in 2022.

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A digital currency issued by the central bank would be different from other cryptocurrencies such as bitcoin, as this currency would give a person or business a direct claim on the central bank, in the same way as with cash. physical.

Regulators around the world are cracking down on digital coins, alarmed by a rapidly expanding market that has bypassed sovereign central banks and could undermine their control over global financial systems.