Peru’s Central Bank is exploring the possibility of launching a retail central bank digital currency (CBDC), according to a report published by the Central Reserve Bank of Peru (CRBP).

The report suggests that a CBDC could help to improve financial inclusion and reduce transaction costs for Peru’s unbanked population, which currently stands at around 50% of the country’s total population.

The report is the first in a series that will examine the need, design, and timing of a Peruvian CBDC, and the CBRP has released a survey of potential users to gather feedback.

No timeline for CBDC development has been announced, but the CBRP has received technical assistance from the International Monetary Fund in its efforts to create a CBDC.