Design and implementation of Peru’s retail central bank digital currency pilot

Milton Vega, Elmer Sánchez and Arturo Andía
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Milton Vega: Central Reserve Bank of Peru, Peru
Elmer Sánchez: Special Adviser, Payments and Financial Infrastructures, Peru
Arturo Andía: Specialist in Financial Infrastructures Analysis, Peru

Journal of Payments Strategy & Systems, 2025, vol. 19, issue 2, 154-169

Abstract: This paper discusses the Central Reserve Bank of Peru’s (BCRP)’s central bank digital currency (CBDC) pilot programme, which set out to test and evaluate retail CBDC as an instrument to promote the adoption and use of digital payments, particularly in areas of low financial inclusion. The paper shows how the BCRP developed a phased approach — encompassing research and assumption testing, with technical assistance from the International Monetary Fund. The design of the pilot is based on a hybrid model where the private sector provides user-facing services while the central bank ensures issuance, governance and oversight. A key feature of this pilot is its offline payment functionality, facilitated through a telecommunication company that operates in remote areas beyond the reach of traditional financial systems. This feature addresses the fact that many people in rural areas do not have access to smartphones. The paper highlights the quasi-experimental design of the pilot, which uses randomised district-level marketing promotions to evaluate the impact on digital payment adoption and cash substitution, among other variables. The paper provides a useful example of a practical approach that allows central banks to obtain information to evaluate the potential of digital currencies to promote access, the use of digital payments, and drive welfare gains in regions with low financial inclusion. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

Keywords: central bank digital currency; CBDC pilot; digital payments (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2025
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