## PREFACE — mission background and executive summary

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---

### Mission background and participants
- At the request of the Banco Central de Reserva del Peru (BCRP), the IMF conducted a second Technical Assistance mission (TA) to support stakeholder engagement as part of a research and development program on Central Bank Digital Currency (CBDC).
- Timeline:
  - Initial mission concluded in January 2022.
  - Remote assistance from December 2022 to April 2023.
  - In-person mission from June 12 to June 16, 2023.
- IMF staff support: ITD and CSF staff, an external expert and an innovation expert from ICD joined the virtual mission.
- BCRP counterpart leads: Paul Castillo, General Manager of Monetary Operations and Financial Stability Department; Milton Vega, Deputy Manager, Payments System.
- Purpose: unpack stakeholder concerns, gauge early industry commitment, support BCRP’s research and development of CBDC.

### Executive summary — goals, approach, and high-level findings
- Mission goals:
  - Continue to support BCRP research on conditions for success for a CBDC and the roles of various stakeholders.
  - Facilitate stakeholder engagement, clarify policy goals, and provide capacity building for the BCRP CBDC team.
- Project phases referenced:
  - Preparation phase (first mission).
  - Proof of Assumptions phase (second phase; started with BCRP white paper).
  - Next phase: Prototyping phase.
- Methodology:
  - Two-day in-person engagement using a design-thinking methodology and tools for stakeholder engagement and surfacing practical recommendations.
- High-level assessment:
  - BCRP’s CBDC research has strong foundations.
  - Stakeholders appreciate BCRP’s willingness to engage.
  - BCRP has taken a measured and structured approach, recognizing that certain foundational elements cannot be rushed.

### Executive summary — recommended thematic directions
- Three main recommendation sets:
  1. Adopt inclusive, agile, and transparent project management practices and governance.
  2. Establish the central bank’s role in leading a “baseline product” co-created with market participants.
  3. Elevate CBDC strategy to national level and leverage existing government digital infrastructure and programs.

### Delivered outputs (virtual and physical)

### Virtual mission outputs
- Four deliverables:
  1. Operating Manual for preparing and executing a CBDC Challenge (annex II): equip BCRP with strategic and tactical aspects of designing, preparing, and executing an innovation challenge for CBDC in Peru.
  2. Capabilities and skills document to organize a CBDC Challenge: guidance on criteria for evaluating proposals and capability requirements.
  3. Input and review of White Paper: expanded analysis on transitioning from a cash-based economy, policy milestones, and characteristics of a potential CBDC for Peru.
  4. Input and review of stakeholder questionnaire: integrated 8 closed-ended questions to collect quantitative data to identify trends and complement qualitative insights.

### Physical mission outputs (June 12–16, 2023)
- Three main outputs:
  10.1 Inaugural Stakeholder Engagement Workshops
    - Two-day interactive workshops; Day 1: open stakeholder reactions to BCRP white paper; Day 2: co-design of ongoing engagement program.
    - Outcome: captured sector expertise and signaled BCRP commitment to stakeholder collaboration.
  10.2 Transfer of knowledge to central bank
    - Five presentations delivered during the week:
      - Three presentations to BCRP staff (two remotely delivered by MCM staff; topics included Wholesale vs Retail CBDC mechanics and macro policy implications; one in-person CSF presentation on behavioral findings).
      - Two presentations as part of stakeholder workshops (IMF global perspectives and the “5 P’s” process).
  10.3 Nine key recommendations to advance this phase
    - Strategic actions: build public sector partnerships to leverage digital public infrastructure, move to detailed product design, and strengthen program management and governance.
    - Nine material recommendations provided to the BCRP team (summarized in the Recommendations section below).

### Key observations from mission engagements

### Central bank observations
- 11.1 Strong management support and collaborative culture:
  - Senior management present and actively engaged; General Manager reiterated project importance; participation encouraged across divisions including Legal and Risk.
- 11.2 Gradual and iterative multi-pronged approach:
  - BCRP adopted a slower, phased approach and advanced alternative options (e.g., mandated interoperability between closed loop digital wallets) that increased wallet adoption and “off-us” transactions.
- 11.3 Increased agility and capacity:
  - CBDC team increased to at least 5 staff and attracted younger talent with skills in agile methodologies, business analysis, and information technology; mission noted additional capacity required.

### Financial sector (private) observations
- 12.1 Appreciation for collaborative engagement: stakeholders praised BCRP’s approach; techniques enabled rapid insight synthesis.
- 12.2 Respected leadership and credibility: BCRP leadership and handling of interoperability increased confidence.
- 12.3 Strong fintech support:
  - Fintechs see CBDC as lowering costs and enabling direct market participation; providers have expertise onboarding micro-businesses and merchants.
  - Fintechs propose CBDC could foster competition in acquiring and issuing.
  - Footnote: Currently the card acquiring business has only two major providers, whilst more than twenty issuers exist.

### Public sector observations (PCM and national digital infrastructure)
- 13.1 Digital identity: IDGob.pe platform enhances RENIEC by incorporating additional identity registries; individuals/companies with G2P or P2G interactions possess a registration number at Banco de la Nación (BN); a secret identity scheme is being tested on tax administration site.
- 13.2 Data sharing: National Digital Government Platform (PNGD) fosters interoperability and resilience across agencies.
- 13.3 Data repository: Two-tiered cloud infrastructure—public cloud for citizen services and private cloud for confidential information hosted on BN servers.
- 13.4 Digital trust: Digital Trust Law and Digital Government Law regulate cyber risks and define management of identity, services, interoperability, and data privacy; governance: protection of data assigned to Ministry of Justice; digital consumer protection to INDECOPI; National Center of Digital Security (CNSD) manages national digital security functions.
- 13.5 Lab: PCM’s Laboratory of innovation connected to OECD Observatory of Public Sector Innovation with over 8,000 global innovators and 98 labs in Peru.

### Workshop participation, format, and outputs
- Invitations spanned the Peruvian payments ecosystem including payment services providers, card networks, Fintechs, banks, regulators, crypto/e-money technology providers, telcos, cloud services, tech consultants, and legal firms.
- Participant counts by type (as presented):
  - 15 Central Bank BCRP
  - 2 Associations ASBANC, ASOMIF
  - 3 Payments System Providers PDP-Bim, CAVALI
  - 3 Regulators SBS, SMV
  - 3 Public Bank Banco de la Nación
  - 3 Private Banks BCP, Interbank, BBVA
  - 5 Card Networks and Acquirers Niubiz, Mastercard, Visa
  - 2 Fintechs B89, Tarjetas Peruanas
  - 5 Crypto Tech Providers and Exchanges eCurrency, Block4e, Binance, Banexcoin
  - 2 Telcos Bitel Perú
  - 1 Cloud Services Provider AWS
  - 1 Tech Consultant Minsait an Indra company
  - 1 Specialized Legal Firm Vodanovic Legal
- Representative ranks:
  - 9 Directors, General Managers
  - 7 C-level Officers
  - 3 CEOs and Founders
  - 3 Heads of Departments
  - 1 Assistant Manager
  - 1 Regional Manager
  - 1 External Advisor
- Workshop logistics:
  - Room split into 5 breakout groups of between 6 to 10 people; seating preassigned to mix participant types; central bank staff embedded as hosts/facilitators.
- Group discussions identified 10 main stakeholder concern themes and produced consensus on 10 focus areas and 35 potential research activities for the Proof of Assumptions phase.
  - 10 themes: Business Model for Payment Services; Priority of Use Cases; User Acquisition / User Adoption; Elements of Optimal User Experience; Merchant Onboarding (formal and informal); The Role of Digital Identity in CBDC; Critical Enabling Infrastructure; Roles and Responsibilities of Stakeholders Across Value Chain; How to Create Interoperability; CBDC Data: Opportunities and Risks (privacy).

### Other mission observations (support/neutral/barriers)
- Supportive:
  - BCRP and the currency enjoy solid domestic and regional reputation; project team adopted paced 5P methodology; stakeholders generally supportive of continued CBDC research; White Paper provided foundation; foundational infrastructure (digital identity) could be leveraged.
- Neutral / Current barriers:
  - Central bank may face challenges acquiring resources and competencies for next steps.
  - Essential elements for CBDC success (digital identity, national infrastructure) are outside central bank control.

### Methodology and workshop approaches (Annex I summary)

### Design thinking and human-centered design
- Approach emphasized diverse inputs and empathy with end users to address adoption and inclusion challenges.
- Process used a double-diamond model: Diverge (gather perspectives), Converge (synthesize to ten themes), Diverge (brainstorm activities), Final convergence (prioritize into a game plan).
- Chatham House Rules applied; interactive techniques (sticky notes, visual thinking) used.

### Day-by-day workshop methods and outputs
- Day 1 (June 12, 2023) — BCRP internal session:
  - Reflective exercise on questionnaire findings; eight key points emerged including adoption, business models, user adoption, privacy/anonymity, financial education, public sector role, private sector risk perspective, and infrastructure/interoperability.
- Day 2 (June 13, 2023) — External session:
  - SWOT Analysis and Priority Mapping across six focus areas; output synthesized into ten main themes used for engagement strategy.
- Day 3 (June 14, 2023) — External session:
  - Adapted Lean Canvas for Proof of Assumptions planning: teams completed canvases producing:
    - 10 canvases
    - 50+ learning goals
    - 40+ research activities
    - Post-session synthesis: 35 distinct action items for next phase.
- Day 4 (June 15, 2023) — BCRP internal session:
  - Importance vs Difficulty prioritization of the 35 action items using staff votes; results produced quadrants of "quick wins" and "strategic investments" for internal reuse.
- Annex II: Innovation Challenge Operating Manual provided step-by-step guidance for preparing and executing an innovation challenge tailored to the Proof of Assumptions phase; central bank expressed satisfaction with the manual.

### Key findings, learning goals, and prioritized recommendations

### Category A — Project governance and program approach (Purpose: transparency, collaboration, resource management)
- Recommendation 1: Promote broader participation and engagement of diverse stakeholders; consider regional differences.
  - Organize Regular Engagements and Workshops; Foster an Open Forum (hackathons, innovation challenges); Account for Regional Differences; consider collaborating with PCM’s Laboratory.
- Recommendation 2: Implement an adaptive and ongoing risk assessment and mitigation framework aligned to project phase.
  - Box 1 — List of Risks to CBDC Issuance (categorized):
    - Technology and operational:
      - Cybersecurity attacks and risks
      - Vendor technology lock-in and dependency on vendors who provide CBDC technology
      - Dependencies on user-facing private-sector providers in a two-tiered CBDC architecture
      - Dependency and vulnerabilities related to telecommunications providers
      - Localized or systematic technological failure (software, hardware, network, etc.)
      - Systems instability resulting from the technological immaturity and pioneering nature of most current CBDC implementations
    - Economic:
      - Aggravation of financial exclusion and inequality in access to financial tools and services
      - Risk of financial disintermediation or a “digital run” to quality of CBDC from commercial banks, including impacts to domestic lending activity and bank balance sheets and profitability
      - Potential effects of CBDC to monetary policy transmission
      - Impact to capital flows and foreign currency exchange
      - Unintended consequences with respect to impacting private-sector payment providers
    - Regulatory and compliance:
      - Risk of CBDC use in illicit activities
      - Compliance with international financial frameworks
      - Risks related to data privacy, such as unwanted data dissemination
    - Other risks:
      - Central bank reputational risk
      - Unintended environmental consequences
      - Cross-border and geopolitical side-effects
  - Phase-specific change management risks:
    - Risk A: Delays or absence of clear prioritized next steps may undermine momentum.
    - Risk B: Lack of requisite BCRP skills and capacity (agile project management, business/process analysis, product design, business model analysis) may cause inertia; internal hiring policies may constrain capacity increases.
    - Risk C: Absence of clear project governance may lead to overlooked or inadequately managed risks; recommendation to establish clear governance structures, decision-making processes, and criteria for advancing phases; maintain distinct oversight of payment systems and FMIs separate from operational functions of a CBDC scheme (including the RTGS).
- Recommendation 3: Embrace an agile methodology and ability to pivot rapidly as new information emerges.
  - Adopt iterative short sprints; maintain a backlog and prioritize by value and feasibility; leverage Interoperability Team’s Agile experience.
- Recommendation 4: Develop a comprehensive communication strategy to ensure continuous clarity regarding goals, roadmap, progress, successes, and industry engagement.
  - Communication goals: educational campaigns, continuous updates, clarity on roles and regulatory implications.
  - Strategy elements: clarify roles of central bank and regulators; emphasize private sector role; outline rules of the game and definitions such as interoperability.
  - Tactics: consortium-based collaboration, co-creation, public-private partnerships, incentives for private sector participation; manage communication risks (clear leadership, budget transparency, incentives).

### Category B — Co-creating a baseline product with market participants (Purpose: define roles, study business models)
- Context: BCRP White Paper (March 2023) provided foundation; stakeholders raised three key questions on roadmap, value chain impact, and business model incentives.
- Recommendation 5: Build strategic roadmap of use cases.
  - Learning goals:
    - 41.1 Identify Use Cases — define where CBDC provides value and capture blind-spot use cases (e.g., rural viewpoints, pharmacies, lottery sellers).
    - 41.2 Evaluate Impact on Market — determine whether CBDC will replace or complement existing products.
    - 41.3 Identify Underdeveloped Niches (e.g., Government Payments).
  - Strategic approach:
    - i. Evaluate assumptions, risks, and level of effort; prioritize low-risk, high-impact use cases.
    - ii. Develop value propositions highlighting benefits to users.
    - iii. Move to PoC use cases with higher impact and lower-risk assumptions and test assumptions.
    - iv. Engage stakeholders to brainstorm assumptions and gain support.
  - Box 2 — Examples of Low Risk Starting Points (illustrative):
    - Example 1: Start with G2P and P2G use case — direct digital transfers and payments to government could reach unbanked individuals and stimulate digitalization of informal economic activity.
    - Example 2: Start with low-value wallet and low-value payments — allow complete anonymous payment below a BCRP-decided limit (examples: bus, market).
    - Example 3: Start with a wholesale CBDC — focus on architecture/back-end systems without end-user elements.
- Recommendation 6: Study end-to-end value chains and roles/responsibilities of stakeholders.
  - Learning goals (44.x):
    - 44.1 Jointly define the value chain and "division of labor" — identify end-to-end activities and minimum wallet design requirements.
    - 44.2 Clarify access and participation criteria — define entry/participation criteria and governance rules per activity and per use-case.
    - 44.3 Establish a baseline architecture and minimum viable core infrastructure — unpack activities and determine interoperability needs; consider iterative innovation challenges for technology selection.
    - 44.4 Evaluate each step of the CBDC value chain jointly with market players.
- Recommendation 7: Identify potential business models and services enabled by CBDC.
  - Learning goals (46.x):
    - 46.1 Obtain clarity on participant costs — cash-in, customer support, dispute resolution.
    - 46.2 Identify incentives for participation — tax incentives, subsidized fees for government payments, CBDC rewards; exploratory dialogue on use of transactional data within competition/privacy boundaries.
    - 46.3 Specify total cost of minimum core infrastructure — assess costs using hackathons or requests for information.
    - 46.4 Benchmark and learn from other jurisdictions.

### Category C — Elevate strategy to national level (Purpose: national alignment and leverage)
- Recommendation 8: Consider opportunities to leverage existing digital public infrastructure (e.g., IDGob.pe, PNGD, two-tier cloud).
  - 48: Digital identity schemes (IDGob.pe) can contribute to financial inclusion; India’s Aadhaar cited as an example.
  - 49: Recommend discussions with Secretariat for Digital Transformation to assess IDGob.pe implications for CBDC architecture, design, and business models.
  - 50: National data management platforms: assess implications of using national data environment for payment transactions and information collection.
  - 51: Internet coverage: coordinate with Secretariat to account for government plans to extend internet coverage in deployment scenarios.
- Recommendation 9: Work with PCM’s innovation lab to leverage network of Fintech providers and government programs.
  - 52–53: Laboratory of Digital Transformation offers innovators and innovation labs to support Proof of Assumptions activities (innovation challenges, hackathons, workshops, design sprints).

### Conclusions and next steps (VI)
- 54: BCRP remains fully committed to collaborative co-design; White Paper and design thinking workshops have solidified stakeholder commitment and positioned BCRP for continued engagement.
- 55: Next steps for Proof of Assumptions guided by three themes supported by nine recommendations:
  - Maintain an agile program with effective change and risk management, broad engagement, and consistent communication.
  - Increase clarity on baseline product design via interactive engagements: prioritize use cases, understand the CBDC value chain for selected use cases, and clarify costs and incentives.
  - Elevate CBDC strategy to national level by exploring collaboration with national agencies and leveraging infrastructure and processes such as digital identity and the innovation lab.

_Italic: Source — 1perea2023003 - PREFACE and mission report (IMF mission preface, executive summary, outputs, observations, methodology, recommendations, and annex summaries)._

### PREFACE ................................................................................................................

### PREFACE

### Preface — mission background and participants
- At the request of the Banco Central de Reserva del Peru (BCRP), the IMF conducted a second Technical Assistance mission (TA) to support the authorities in stakeholder engagement as part of a research and development program on Central Bank Digital Currency (CBDC).
- Timeline:
  - Initial mission concluded in January 2022.
  - Remote assistance from December 2022 to April 2023.
  - In-person mission from June 12 to June 16, 2023.
- IMF staff support: ITD and CSF staff, an external expert and an innovation expert from ICD joined the virtual mission.
- BCRP counterpart leads: Paul Castillo, General Manager of Monetary Operations and Financial Stability Department; Milton Vega, Deputy Manager, Payments System.
- Purpose: unpack stakeholder concerns, gauge early industry commitment, support BCRP’s research and development of CBDC.

### Executive Summary — mission goals, approach, and high-level findings
- Mission goals:
  - Continue to support BCRP research on conditions for success for a CBDC and the roles of various stakeholders.
  - Facilitate stakeholder engagement, clarify policy goals, and provide capacity building for the BCRP CBDC team.
- Project phases referenced:
  - Preparation phase (first mission).
  - Proof of Assumptions phase (second phase; started with BCRP white paper).
  - Next phase: Prototyping phase.
- Methodology:
  - Two-day in-person engagement using a design-thinking methodology.
  - Tools and capacity building to equip BCRP for stakeholder engagement and for surfacing practical recommendations.
- High-level assessment:
  - BCRP’s CBDC research has strong foundations.
  - Stakeholders appreciate BCRP’s willingness to engage.
  - BCRP has taken a measured and structured approach, recognizing that certain foundational elements cannot be rushed.
- Purpose of engagement: foster candid, open discussions between stakeholders and BCRP to understand expectations and concerns and to inform policy choices.

### Executive Summary — recommended thematic directions (summary)
- Three main recommendation sets:
  1. Adopt inclusive, agile, and transparent project management practices and governance.
  2. Establish the central bank’s role in leading a “baseline product” co-created with market participants.
  3. Elevate CBDC strategy to national level and leverage existing government digital infrastructure and programs.

### Table of main recommendations (as presented in the source)
- Main Recommendations — Responsibility — Priority — Date
  - Sustain an agile program approach, and establish project governance framework
    1. Promote broader participation and engagement of diverse stakeholders. Consider impact of regional differences. — BCRP — Medium — ST
    2. Implement an adaptive and ongoing risk assessment and mitigation framework, considering that new risks continually emerge. — BCRP — High — Ongoin g
    3. Embrace an agile methodology and the ability to pivot rapidly as new information emerges. — BCRP — Medium — Ongoin g
    4. Develop a comprehensive communication strategy to ensure continuous clarity regarding the CBDC project's roadmap, progress, industry engagement. — BCRP — High — ST
  - Co-create “baseline product” with market participants
    5. Build strategic roadmap of use cases, to reduce risks of misalignment with market infrastructure and value chain. — BCRP/Industry — High — ST
    6. Study CBDC end-to-end value chain and the roles and responsibilities of relevant stakeholders. Consider regional differences. — BCRP — High — ST
    7. Identify the potential business models and services that can be facilitated through a well-designed CBDC. — BCRP/Industry — High — ST
  - Elevate strategy at national level
    8. Consider opportunities to leverage the existing digital public infrastructure — BCRP, PCM — Medium — MT
    9. Work with PCM’s innovation lab to leverage their large network and capacity — BCRP, PCM — Medium — MT
- Note: "* The table highlights the main recommendations (with additional sub-recommendations expanded on in the report)."
- Time horizon definitions given in the table:
  - ST: Short term (less than 6 months);
  - MT: Medium term (results within 18 months);
  - LT: Long term (results within 30 months).

### I. The CBDC journey in Peru — prior findings and current mission context
- Previous mission (August 2021 to January 2022):
  - Applied Design Thinking with BCRP staff to identify demand- and supply-side pain points.
  - Key challenges identified: lack of interoperability between payment schemes, dominance of cash despite high costs and security risks, high levels of informality.
  - BCRP’s vision for CBDC: remedy for low levels of financial inclusion driven by fee aversion, lack of financial and digital literacy, and lack of trust in non-cash instruments.
  - Two qualitative studies (November 2021) validated discovery, investigated barriers/enablers, and examined stakeholder perceptions; findings emphasized environmental and behavioral factors (e.g., perceptions of cash as more secure and convenient, lack of trust in digital payment methods, lack of acquiring infrastructure).
- Virtual segment of current mission (December 2022 to April 2023):
  - Helped develop a strategic roadmap to transition from Preparation to Proof of Assumptions phase.
  - BCRP published a white paper in February 2023 (milestone).
  - IMF delivered an operating manual for an innovation challenge, capability requirements, and stakeholder engagement guidelines.

### I. The CBDC journey in Peru — in-person mission objectives and outcomes
- Primary goal of in-person mission (June 12 to June 16, 2023):
  - Assist BCRP to engage stakeholders face-to-face to gauge support and concerns regarding a potential CBDC.
- Rationale:
  - Peru’s CBDC motivation differs from some advanced economies: addressing digital payment adoption and financial inclusion amid a still significant unbanked population.
  - Effective stakeholder and change management is essential; co-creation with stakeholders is necessary for a successful CBDC ecosystem.
- Outcome:
  - Stakeholder engagement was essential to unpack concerns and identify priority focus areas for future engagements.
  - The mission produced nine recommendations tailored to enhance chances of fulfilling policy objectives outlined in the white paper.

### II. Delivered outputs — virtual mission deliverables
- The virtual mission produced four main outputs:
  1. Operating Manual for preparing and executing a CBDC Challenge (annex II):
     - Objective: equip BCRP with understanding of strategic and tactical aspects of designing, preparing, and executing an innovation challenge for CBDC in Peru.
  2. Capabilities and skills document to organize a CBDC Challenge:
     - Guidance on criteria for evaluating proposals and capability requirements.
  3. Input and review of White Paper:
     - Expanded analysis on challenges of transitioning from a cash-based economy, policy milestones, and characteristics of a potential CBDC for Peru.
  4. Input and review of stakeholder questionnaire:
     - Questionnaire enhanced by integrating 8 closed-ended questions to collect quantitative data to identify trends and complement qualitative insights.

_Italic: Source — 1perea2023003 - PREFACE (IMF mission preface and executive summary)._

### 10.  The physical mission delivered three main outputs:

### 10.  The physical mission delivered three main outputs:

### 10.1. Inaugural Stakeholder Engagement Workshops
- Two-day interactive workshops fostering collaborative engagement between payments system stakeholders and central bank staff.
- Day 1: safe and open space for stakeholders to express reactions and priorities regarding CBDC implementation in Peru, building on BCRP's white paper.
- Day 2: collaborative design of an ongoing engagement program focused on priority areas identified on Day 1.
- Outcome: captured a wealth of knowledge and expertise from participating private sector representatives and demonstrated BCRP’s commitment to stakeholder collaboration.

### 10.2. Transfer of knowledge to central bank
- During the week in Peru, the IMF delivered five presentations.
  - Three presentations were exclusively delivered to BCRP staff on the first day for capacity development and knowledge exchange.
    - Two were delivered remotely by MCM staff from IMF HQ.
      - One explained mechanisms and policy implications of Wholesale CBDC versus Retail CBDC.
      - One provided insights into macro policy implications of CBDC for financial inclusion and shared an econometric model that identified key factors influencing user adoption.
    - The final presentation was delivered in-person at the central bank by CSF staff, highlighting behavioral findings and emphasizing a human-centered approach optimized for end user adoption.
  - Two presentations were delivered as part of the stakeholder engagement workshops.
    - One described IMF’s perspective of CBDC projects in other jurisdictions globally.
    - One detailed the “5 P’s” process advocated by the IMF and contextualized where BCRP is in their journey relative to others.

### 10.3. Nine key recommendations to advance this phase
- Three concrete strategic actions emerged:
  - Building stronger public sector partnerships to leverage emerging digital public infrastructure (such as digital identity schemes).
  - Moving to detailed product design.
  - Strengthening program management (and governance).
- These strategic actions were supported by nine material recommendations from the mission team.

### III. KEY OBSERVATIONS — Central bank
- The Mission engaged with BCRP before and after the industry workshops and held several bilateral conversations. Three observations:
  - 11.1. Strong management support for CBDC project and collaborative BCRP culture
    - Senior management demonstrated strong top management support; management present and actively engaged for all sessions.
    - Importance of the project reiterated by the General Manager.
    - Management encouraged staff participation, sought alternate perspectives, and created space for younger staff to challenge emerging issues.
    - Other Divisions including the Legal and Risk Departments were invited to participate.
  - 11.2. Gradual and iterative multi-pronged approach to payment system problems
    - BCRP adopted a slower and gradual approach and advanced alternative options to CBDC to address payment system problems (e.g., mandated interoperability between closed loop digital wallets).
    - Increased interoperability has increased digital wallet adoption, new merchants, and increased “off-us” payment transactions.
  - 11.3. Increased agility and capacity
    - Capacity within the CBDC team has increased to at least 5 staff and attracted younger talent with skills in agile methodologies, business analysis, and information technology.
    - Mission noted additional capacity would be required moving forward (see recommendation 2).

### III. KEY OBSERVATIONS — Financial sector stakeholders: Private sector
- Mission engaged bilaterally with two major fintech firms, a card scheme, and a CBDC technology provider. Three observations:
  - 12.1. Appreciation for the highly collaborative engagement
    - Stakeholders unanimously acknowledged the unique and highly engaging approach by the BCRP; expectations were met or surpassed.
    - Techniques (in-flight qualitative coding and clustering) enabled rapid synthesis of insights and common understanding.
  - 12.2. Respected leadership, credibility, and presence
    - BCRP has established strong industry presence and respected leadership; General Manager and senior management highly regarded.
    - Credibility bolstered by handling complex challenges such as interoperability.
  - 12.3. Strong support from fintech sector
    - Fintech firms supportive of CBDC effort, recognizing opportunities and challenges.
    - A prominent online merchant aggregator noted high cost of entry to certain payment systems as barriers; fintechs suggest CBDC could lower costs and enable more direct participation.
    - Interviewed providers have expertise onboarding micro-businesses and merchants with minimal transaction volume.
    - Fintechs propose CBDC could foster competition in both acquiring and issuing aspects of the payments market.
    - Footnote: Currently the card acquiring business has only two major providers, whilst more than twenty issuers exist.

### III. KEY OBSERVATIONS — Public sector
- Mission met senior authorities from the Secretariat of Digital Government and Transformation of the Presidency of the Council of Ministers of Peru (PCM). Relevant elements for CBDC R&D:
  - 13.1. Digital identity
    - New national platform: IDGob.pe for online identity verification for Peruvians and foreigners; enhances RENIEC by incorporating additional identity registries.
    - Individuals or companies that received government financial assistance (G2P) or made payments to government (P2G) possess a registration number at Banco de la Nación (BN).
    - A secret identity scheme equivalent to a signature is being tested on the tax administration’s web site.
  - 13.2. Data sharing
    - National Digital Government Platform (PNGD) used across agencies to foster interoperability and security of data; aims to digitalize government services and promote security and high resilience.
  - 13.3. Data repository
    - Two-tiered cloud infrastructure: public cloud for citizen-facing services and private cloud for confidential information hosted on servers within Banco de la Nación (BN).
  - 13.4. Digital trust
    - Digital Trust Law and Digital Government Law regulate cyber risks and establish management of digital identity, digital services, architecture, interoperability, and data privacy.
    - PCM governance: protection of data assigned to Ministry of Justice; digital consumer protection to INDECOPI.
    - National Center of Digital Security (CNSD) manages operation, education, promotion, and collaboration on digital security nationally.
  - 13.5. Lab
    - PCM oversees a Laboratory of innovation connected to OECD’s Observatory of Public Sector Innovation, over 8,000 global innovators, and 98 labs in Peru.

### Workshop participants and format
- Invitations extended broadly across the Peruvian payments ecosystem: payment services providers, card networks, Fintechs, banking sector, SBS, SMV, technology providers in crypto and e-money markets.
- Table: participant breakdown (as presented)
  - Representatives Type: 15 Central Bank BCRP; 2 Associations ASBANC, ASOMIF; 3 Payments System Providers PDP-Bim, CAVALI; 3 Regulators SBS, SMV; 3 Public Bank Banco de la Nación; 3 Private Banks BCP, Interbank, BBVA; 5 Card Networks and Acquirers Niubiz, Mastercard, Visa; 2 Fintechs B89, Tarjetas Peruanas; 5 Crypto Tech Providers and Exchanges eCurrency, Block4e, Binance, Banexcoin; 2 Telcos Bitel Perú; 1 Cloud Services Provider AWS; 1 Tech Consultant Minsait an Indra company; 1 Specialized Legal Firm Vodanovic Legal.
  - Representatives Rank: 9 Directors, General Managers; 7 C-level Officers (Chief Product Officer, Chief Business Officer, Chief Security Officer, Chief Commercial Officer, etc.); 3 CEOs and Founders; 3 Heads of Departments (Fintech, Open Banking, New Payment Services, etc.); 1 Assistant Manager; 1 Regional Manager; 1 External Advisor.
- Workshop logistics:
  - Room split into 5 breakout groups of between 6 to 10 people.
  - Seating preassigned to mix participant types; central bank staff embedded as hosts and facilitators to keep conversations flowing.
- Group discussions identified 10 main themes of stakeholder concern regarding CBDC implementation:
  - Business Model for Payment Services
  - Priority of Use Cases
  - User Acquisition / User Adoption
  - Elements of Optimal User Experience
  - Merchant Onboarding (formal and informal)
  - The Role of Digital Identity in CBDC
  - Critical Enabling Infrastructure
  - Roles and Responsibilities of Stakeholders Across Value Chain (division of labor)
  - How to Create Interoperability
  - CBDC Data: Opportunities and Risks (taking into account privacy)
- Stakeholders identified additional parties for future engagement, notably entities with strong rural presence (e.g., cajas Municipals) for adoption by financially excluded populations.
- Outcome of workshops: consensus on 10 special areas of focus and 35 potential research activities for the Proof of Assumptions phase.

### Other observations
- Table 3: Key Mission Observations — summarized support/neutral/current barriers:
  - Supportive
    - The BCRP and the currency enjoy a solid reputation domestically and regionally.
    - Project team adopted a paced and rigorous approach based on the 5P methodology, validating assumptions by engaging stakeholders.
    - Stakeholders consulted were generally supportive of continuing CBDC research; some firms, including incumbents and Fintech firms, expressed high interest.
    - The White Paper provided foundation for debate on use cases, business models, and roles and responsibilities.
    - Foundational digital infrastructure elements, including digital identity, could be leveraged.
  - Neutral / Current barriers
    - Central bank may face challenges acquiring resources and competencies necessary for next project steps.
    - Essential elements for CBDC success (digital identity, national infrastructure) are outside central bank control.

### IV. METHODOLOGY / APPROACH
- Human-centered design and design thinking methodology applied to organize and facilitate the week-long mission, including two stakeholder workshop days.
  - Emphasized gathering inputs from diverse perspectives, building empathy with end user populations—relevant for adoption and financial inclusion issues.
- Design thinking format:
  - Inputs gathered pre-mission via a questionnaire; results analyzed jointly by IMF and BCRP inside the central bank on Day 1 and during the first workshop day.
  - Process followed a double-diamond model of divergence and convergence:
    - Diverge: widen understanding and gather diverse stakeholder perspectives.
    - Converge: synthesize insights and define ten key themes.
    - Diverge again: brainstorm collaboration methods and research activities on Day 2.
    - Final convergence: prioritize into an actionable game plan for the Proof of Assumptions phase.
  - Workshops used Chatham House Rules to protect participant attribution and foster open sharing.
  - Interactive techniques (sticky notes, visual thinking) encouraged creativity and breakdown of silos.
- Outcomes and tools:
  - Two workshops yielded partial consensus on 10 focus areas and 35 potential research activities.
  - Mission modeled prioritization exercises using adapted Lean canvases and matrices (described in Annex I) to help BCRP break down complex topics into manageable research questions and repeatedly ideate, prioritize, and operationalize activities.

*Source: 1perea2023003 - 10. The physical mission delivered three main outputs*

### 23. Overall, the workshops sent a powerful message to stakeholders about the central bank’s

### 23. Overall, the workshops sent a powerful message to stakeholders about the central bank’s

### Key findings from workshops and mission
- The workshops conveyed the central bank’s commitment to collaboration, inclusive decision-making, and partnership.
- Workshops provided open dialogue and equal participation, allowing stakeholders to contribute expertise and shape outcomes.
- The inclusive approach reinforced already high levels of trust in the central bank, strengthened relationships with the private sector around CBDC, and demonstrated the central bank’s credibility and seriousness in collaborating with stakeholders.
- The Mission identified nine recommendations to support the central bank in the current phase of its CBDC research program.
- The BCRP has adopted the IMF’s 5P Framework, which defines the current phase as the “proof of assumptions” stage.
- The workshop with stakeholders led to the identification of 35 potential activities.

### Recommended project governance and program approach (Category A)
- Purpose: Ensure transparency, collaboration, and effective resource management.
- Recommendation 1: Promote broader participation and engagement of diverse stakeholders; consider regional differences.
  - Organize Regular Engagements and Workshops — build upon the engagement/workshop held on June 13 and 14, 2023; involve traditional market participants, incumbents, Fintech firms, and technology companies.
  - Foster an Open Forum — organize hackathons or innovation challenges to enable wider audience participation and surface “unknown-unknowns”; important for regional differences.
  - Account for Regional Differences — tailor use cases and CBDC strategy to unique characteristics, needs, stakeholders and infrastructure readiness of different regions.
  - Consider executing an innovation challenge or similar initiative to further engage stakeholders and foster collaboration; such initiatives can incentivize participation and generate solutions for specific use cases (Recommendation #3) and could be done in collaboration with CPM’s Laboratory.
- Recommendation 2: Implement an adaptive and ongoing risk assessment and mitigation framework aligned to project phase; consider macroeconomic, financial, legal, regulatory, technology, governance and operational risks and gaps.
  - Box 1. List of Risks to CBDC Issuance
    - Technology and operational:
      - Cybersecurity attacks and risks
      - Vendor technology lock-in and dependency on vendors who provide CBDC technology
      - Dependencies on user-facing private-sector providers in a two-tiered CBDC architecture
      - Dependency and vulnerabilities related to telecommunications providers
      - Localized or systematic technological failure (software, hardware, network, etc.)
      - Systems instability resulting from the technological immaturity and pioneering nature of most current CBDC implementations
    - Economic:
      - Aggravation of financial exclusion and inequality in access to financial tools and services
      - Risk of financial disintermediation or a “digital run” to quality of CBDC from commercial banks, including impacts to domestic lending activity and bank balance sheets and profitability
      - Potential effects of CBDC to monetary policy transmission
      - Impact to capital flows and foreign currency exchange
      - Unintended consequences with respect to impacting private-sector payment providers
    - Regulatory and compliance:
      - Risk of CBDC use in illicit activities
      - Compliance with international financial frameworks
      - Risks related to data privacy, such as unwanted data dissemination
    - Other risks:
      - Central bank reputational risk
      - Unintended environmental consequences
      - Cross-border and geopolitical side-effects
  - Three risks emerged for the current phase related to change management and stakeholder engagement:
    - Risk A: Delays or absence of a clear and prioritized set of next steps may undermine commitment and momentum from the initial workshop.
    - Risk B: Lack of requisite BCRP skills and capacity (agile project management, business and process analysis, product design, business model analysis) may cause inertia; internal hiring policies may constrain capacity increases.
    - Risk C: Absence of clear project governance may lead to overlooking or inadequately managing project risks; recommendation to establish clear governance structures, decision-making processes, and criteria for advancing phases; maintain distinct oversight of payment systems and FMIs separate from operational functions of a CBDC scheme (including the RTGS).
- Recommendation 3: Embrace an agile methodology and ability to pivot rapidly as new information emerges.
  - Adopt an iterative methodology allowing short and impactful sprints; leverage Interoperability Team’s Agile experience.
  - Maintain a backlog of tasks or activities and prioritize them based on value and feasibility to optimize limited resources and deliver quick wins.
- Recommendation 4: Develop a comprehensive communication strategy to ensure continuous clarity regarding goals, roadmap, progress, successes, and industry engagement.
  - Communication goals: provide detailed insights into players in the CBDC ecosystem; serve as educational campaigns; provide continuous updates and progress reports; address concerns on participation, roles and responsibilities, and regulatory and value chain implications.
  - Strategy elements: clarify roles of central bank and regulators; emphasize private sector role, gaps and innovation opportunities; outline rules of the game and definitions such as interoperability.
  - Tactics: foster a collective approach, consortium-based collaboration, public-private partnerships, co-creation, and development of a public good to motivate stakeholder participation and reveal incentives (access to new clients, increased market share, tax incentives, new business models).
  - Communication risks to manage: central bank must position itself as clear project leader (or nominate endorsed alternative), eliminate ambiguity around budget (subsidies vs. private cost-bearing), and consider incentives for private sector participation to avoid monopolies or lack of adoption.

### Co-creating a baseline product with market participants (Category B)
- Purpose: Clearly define roles, responsibilities, and expectations; study profitable business models to engage market participants.
- White paper context:
  - The white paper published by BCRP in March 2023 provided insights into payment system dynamics and potential CBDC benefits (increased efficiencies, lower barriers to financial inclusion) and recognized challenges (regulatory support, technology choices, public acceptance).
  - Workshop participants responded positively but emphasized three key questions:
    - What roadmap would allow for the gradual introduction of CBDC use cases?
    - How would a CBDC impact different parts of the payment value chain and stakeholder roles?
    - What elements of business models can incentivize participation of existing and new stakeholders?
- Recommendation 5: Build strategic roadmap of use cases.
  - Need to identify a minimum set of use cases that can motivate behavior change from cash-only to digital payment behaviors.
  - Learning goals:
    - 41.1 Identify Use Cases — thoroughly define where CBDC provides value and capture “blind-spot” use cases from diverse market actors (e.g., rural viewpoints, pharmacies, lottery sellers).
    - 41.2 Evaluate Impact on Market — determine whether CBDC will replace or complement existing payment products.
    - 41.3 Identify Underdeveloped Niches (e.g., Government Payments) — niches where users face payment challenges, such as specific P2G transactions or G2P social welfare programs.
  - Strategic approach to prioritize lower-risk, high-value use cases:
    - i. Evaluate assumptions, risks, level of effort and prioritize low-risk, high-impact use cases for initial implementation.
    - ii. Develop value propositions highlighting specific benefits to users.
    - iii. Prioritize moving to the PoC those use cases with higher potential impact and lower-risk assumptions while identifying assumptions to be tested.
    - iv. Engage stakeholders to brainstorm assumptions and benefits and gain support.
  - Box 2. Examples of Low Risk Starting Points (illustrative):
    - Example 1: Start with G2P and P2G use case — direct digital transfers and payments to government could reach unbanked individuals and stimulate digitalization of informal economic activity, fostering financial inclusion and financial literacy via real-time tracking.
    - Example 2: Start with low-value wallet and low-value payments — allow complete anonymous payment below a BCRP-decided limit (examples: bus, market).
    - Example 3: Start with a wholesale CBDC — focuses on architecture and back-end systems without end-user elements, addressing back-end payment infrastructure weaknesses.
- Recommendation 6: Study end-to-end value chains and roles and responsibilities of relevant stakeholders (further detail continues beyond the provided excerpt).

*Source: 1perea2023003 - 23. Overall, the workshops sent a powerful message to stakeholders about the central bank’s*

### 43. Building on the identified core use cases, workshop discussions emphasized the need for

### Building on the identified core use cases, workshop discussions emphasized the need for clarity of the “CBDC value chain”

### Value chain clarity and design (paragraphs 43–44.4)
- 43: Workshop discussions emphasized the need for clarity of the “CBDC value chain”, defined as the set and sequence of activities involved in delivering the use cases and the identification of relevant stakeholders.
- 43: The BCRP faces the challenge of establishing a baseline product design that:
  - distinguishes specific activities to engage the intended users;
  - defines activities with minimum requirements for the central bank while allowing stakeholders to compete and differentiate their offerings.
- 43: Key considerations for targeted users: low cost, high speed, ease-of-use, and trust in the product.
- 44: Learning goals to address these objectives:
  - 44.1 Jointly define the value chain and "division of labor"
    - Clearly identify the end-to-end value chain for the use cases and clarify activities performed by the central bank and the private sector.
    - Determine acquisition processes for stakeholders, such as fintech firms, and clarify minimum wallet design requirements.
    - The text includes an illustrative high-level example of a CBDC value chain (Figure 3).
  - 44.2 Clarify access and participation criteria
    - Define entry and participation criteria for all activities within the value chain, considering potential new participants and concerns from incumbents.
    - The governance model and “rules of the game” should be defined across the set of activities and per “use-case.”
    - Footnote 14: Further detail is required on which stakeholders could “acquire” CBDC and how (e.g., whether fintech firms would purchase CBDC through incumbents or directly with the central bank).
  - 44.3 Establish a baseline architecture and minimum viable core infrastructure
    - Unpack activities across the value chain to develop a clearer baseline architecture.
    - Explore iterative approaches like innovation challenges to select appropriate technologies for the prototype phase.
    - Determine interoperability needs with existing products and systems.
  - 44.4 Evaluate each step of the CBDC value chain jointly with market players
    - Engage market players to co-create and structure activities in the CBDC value chain to support digital payment adoption.

### Business model, costs, and incentives (Recommendation 7; paragraphs 45–46.4)
- Recommendation 7: Identify the potential business models and services that can be facilitated through a well-designed CBDC.
- 45: Discussants emphasized the need for a clear business model addressing costs, potential revenues, and overall sustainability; cost recovery was highlighted as a key success factor.
- 46: Learning goals to address business model objectives:
  - 46.1 Obtain clarity on participant costs
    - Determine costs for services such as cash-in, customer support, and dispute resolution.
    - The BCRP is called upon to provide clarity on these costs to the extent possible.
  - 46.2 Identify incentives for participation
    - Explore incentives through open table discussions, e.g., tax incentives for micro-merchants, subsidized fees for government payments, or CBDC rewards.
    - Initiate exploratory dialogue on availability and utilization of CBDC payment-related transactional data, including its use within competition and privacy law boundaries.
    - Engage with other central banks to learn about their use of transactional data.
  - 46.3 Specify the total cost of minimum core infrastructure
    - Begin understanding costs associated with core infrastructure for minimum viable use cases and related activities.
    - Modalities like hackathons or requests for information from technology providers can aid cost assessment.
    - Footnote 15: Several participants viewed CBDC as potentially a new platform allowing new participants (fintech firms, mobile-POS providers, non-bank wallet providers, technology providers) direct access to the platform without intermediaries; incumbents expressed concern about disintermediation.
  - 46.4 Benchmark and learn from other jurisdictions
    - Conduct benchmarking studies with jurisdictions already in production or pilot phases to gain insights on clarifying business model aspects.

### Elevate strategy at national level (Section C; Recommendation 8–9; paragraphs 47–53)
- 47: The central bank should explore national elements that could benefit the project and reduce risks; a CBDC ecosystem depends on central bank platform plus government-managed elements and regulatory frameworks.
- Recommendation 8: Consider opportunities to leverage the existing digital public infrastructure.
- 48: The role of digital identity
  - National digital identity schemes (e.g., IDGob.pe) could contribute to financial inclusion.
  - Research cited highlights positive impact of cross-sector national identity schemes in facilitating access to digital services.
  - India's Aadhaar cited as an example demonstrating significance of integrating digital identity to reduce financial exclusion.
- 49: Recommendation to hold discussions with the Secretariat for Digital Transformation to assess the role IDGob.pe could play for CBDC success and implications for CBDC architecture, design, and business models with respect to financial inclusion.
- 50: The role of national data management platforms
  - Government efforts to manage and safeguard citizens' data could be leveraged; assess implications of using the national data environment for payment transactions and information collection in certain use cases.
  - PCM’s efforts in establishing a secure data collection and protection framework present an opportunity to evaluate advantages and risks of integrating national data infrastructure into the CBDC strategy.
- 51: Implications of the national strategy for internet coverage
  - Discussions with the Secretariat for Digital Transformation can clarify plans to extend internet coverage and help identify how CBDC use cases and deployment scenarios should account for government plans to ensure widespread internet access.
- Recommendation 9: Work with PCM’s innovation lab to leverage their network of Fintech providers and create synergies with relevant government programs.
- 52–53: The role of national innovation infrastructure
  - Strengthen research and innovation to identify suitable technology partners and product designers, user experience considerations, compelling use cases, and untapped public and private resources.
  - The Laboratory of Digital Transformation offers a network of innovators and domestic innovation labs and global reach that can support Proof of Assumptions activities.
  - Engage proactively with the Laboratory's management to explore collaboration for innovation challenges, hackathons, workshops, design sprints, and other research activities.

### Conclusions and next steps (VI; paragraphs 54–55)
- 54: The BCRP remains fully committed to collaborative co-designing of the CBDC. Publication of the white paper has enabled broad stakeholder input. Tailored design thinking workshops have solidified stakeholder commitment and BCRP is well placed for continued industry engagement.
- 55: Next steps of the proof of assumptions phase are guided by three main themes, supported by nine recommendations:
  - Maintain an agile program with effective change and risk management, broad and ongoing engagement, and consistent communication with internal and external stakeholders to sustain momentum.
  - Increase clarity on baseline product design through interactive engagements: prioritize use cases for the target market, understand the CBDC value chain for selected use cases, and provide clear information on costs and incentives for adoption.
  - Elevate the CBDC strategy to the national level by exploring collaboration opportunities with relevant national agencies and leveraging emerging infrastructure and processes, such as digital identity and the innovation lab.

*Source: 1perea2023003 - 43. Building on the identified core use cases, workshop discussions emphasized the need for*

### Annex I: Description of Methodologies Used during

### Annex I: Description of Methodologies Used during Workshops

### Day 1: Monday June 12, 2023 — BCRP Internal Session
- Workshop: Reflecting on Questionnaire Findings (1.5 hours)
- Framework: Point-of-View Challenge Definition
- Aim:
  - Reflective exercise to engage the central bank team in collectively interpreting the questionnaire findings.
  - Onboard the core BCRP CBDC team to design thinking approaches and tools for stakeholder workshops on day two.
- Method and Results:
  - Followed a short presentation of stakeholder questionnaire results.
  - Individual reflection using sticky notes to highlight significant points and personal insights; notes were displayed collectively.
  - Individual analysis answering: "What are stakeholders really saying?"
  - Group clustering and discussion of inputs.
  - Eight key points emerged:
    - 1) the adoption of CBDC by the private sector;
    - 2) potential motivating business models;
    - 3) the need to foster user adoption;
    - 4) issues of privacy, anonymity, and informality amongst users;
    - 5) the financial education barriers in the user population;
    - 6) the role of the public sector;
    - 7) the private sector’s perspective of risk in participating; and
    - 8) the role of infrastructure, particularly with regard to interoperability.
  - Exercise enabled sense-making of questionnaire findings, pattern identification, and deeper understanding of stakeholders' viewpoints.
  - Format: democratic and horizontal; endorsed and reiterated by the General Manager who participated actively.

### Day 2: Tuesday June 13, 2023 — External Session with BCRP and Industry Stakeholders
- Workshop: Design Elements of CBDC (3 hours)
- Framework: SWOT Analysis and Priority Mapping
- Aim:
  - Engage industry stakeholders regarding reactions to BCRP’s whitepaper on CBDC.
  - Identify concept strengths, opportunities, weak areas, and risks.
  - Signal central bank openness to market input.
- Method and Results:
  - Presentation reintroducing white paper concepts.
  - Participants divided into five table groups; each table assigned one of six specific focus areas:
    - Demand-side use cases
    - Supply-side business model
    - System design characteristics
    - Demand-side value proposition
    - Supply-side incentives
    - System risks and security
  - Individual sticky-note reflections answering “what’s on your mind” per focus area; clustering under "Opportunities and Strengths" or "Risks and Weaknesses".
  - Groups labeled clusters and prioritized them by repositioning along a vertical spectrum (or number ranking when repositioning was difficult).
  - Each table completed two rounds (two priority maps each) with embedded central bankers acting as hosts/facilitators.
  - Post-session synthesis by IMF mission team identified ten main themes that appeared as high priority across all groups:
    - 1) clarity around roles and responsibilities for stakeholders;
    - 2) clarity around business models for participation in CBDC;
    - 3) onboarding of merchants to CBDC;
    - 4) the priority minimum set of use cases needed to successfully launch CBDC;
    - 5) barriers and enablers to user adoption;
    - 6) the elements of optimal user experience;
    - 7) core enabling infrastructure;
    - 8) interoperability;
    - 9) digital identity; and
    - 10) opportunities and risks regarding CBDC data and privacy.
  - These topics served as starting points for drafting a market engagement strategy on day three.

### Day 3: Wednesday June 14, 2023 — External Session with BCRP and Industry Stakeholders
- Workshop: Engagement Strategy Brainstorming (3 hours)
- Framework: Adapted Lean Canvas for Proof of Assumptions Phase Engagement Planning
- Aim:
  - Design collaboration approaches for the Proof of Assumptions phase to maximize CBDC benefits for Peru.
  - Use the canvas to generate diverse ideas quickly and guide brainstorming of content, research, and collaboration modalities.
- Method and Results:
  - Canvas introduced with three sections: "what we need to learn," "specific activities for learning," and "who should be involved in the activity" (a fourth optional row covered conditions, costs, and risks).
  - Participants divided into 5 groups and assigned two of the 10 main themes; objective: complete one canvas per theme.
  - Teams identified knowledge gaps and learning objectives (examples: business models — "how CBDC might affect the existing value chain?"), brainstormed research activities, and recommended stakeholders to involve.
  - Output:
    - 10 completed canvases
    - 50+ learning goals
    - 40+ research activities
    - Post-session synthesis distilled results into 35 distinct and specific action items for the central bank to consider for the next phase.
  - Notable result: user-related areas (prioritizing use cases and enhancing user experience) generated the highest number of action items, highlighting user-centric focus.

### Day 4: Thursday June 15, 2023 — BCRP Internal Session
- Workshop: Prioritizing engagement mechanisms (1.5 hours)
- Framework: Importance vs. Difficulty Prioritization Matrix
- Aim:
  - Allow central bank staff to reflect and determine which action items are most impactful and feasible from their internal perspective.
  - Provide a repeatable approach to evaluate feasibility and impact throughout the CBDC project lifecycle.
- Method and Results:
  - IMF team introduced the synthesized list of 35 action items.
  - Each central bank staff member given 5 votes to place on activities they considered most important to take forward (mechanism to narrow priorities without excluding deprioritized items).
  - Participants ranked items horizontally by perceived importance (single-file, no ties) and then vertically by difficulty (no ties), producing an Importance/Difficulty matrix.
  - Outcomes:
    - Items placed into quadrants identifying "quick wins" (important and feasible) and "strategic investments" (important but more difficult).
    - Group found the matrix useful for direction-setting and encouraged periodic reuse as project conditions evolve.

### Annex II: Innovation Challenge Operating Manual (summary)
- Purpose:
  - Operational manual to organize an innovation challenge in Peru tailored to the "Proof of Assumptions" phase.
  - Draws on global best practices and lessons from other central banks' challenges.
- Contents and guidance:
  - Explanation of nature, scope, and goals of an innovation challenge.
  - Steps for preparation, design, execution, and evaluation.
  - Key elements: target audience identification and incentives, definition of key performance indicators, robust communication strategy, evaluation and reward mechanisms.
  - Use cases presented to inform preparation and execution.
- Reception:
  - The central bank expressed satisfaction with the operating manual as a valuable resource for organizing and managing an innovation challenge aligned with the white paper goals.

*Annex I: Description of Methodologies Used during Workshops*

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_Source: https://www.imf.org/-/media/files/publications/cr/2023/english/1perea2023003.pdf_