The Central Bank of Paraguay (BCP) has launched a new system for fully digital Certificates of Deposit (CDAs), a move designed to modernise the investment process for customers. The new Digital Certificate of Deposit of Savings (CDA-d) system will allow clients to invest their funds entirely online, making the process faster and more agile while eliminating the need for paper documents.
This new platform facilitates the desmaterialización, or dematerialisation, of CDAs. This means the traditional physical, paper-based certificates will be phased out and replaced by electronic records. The system represents these investments through book-entry accounts, managed digitally from start to finish.
A streamlined investment process
Under the new fully digital savings certificates framework, authorised financial institutions can now electronically handle the entire lifecycle of these investment instruments. This includes the issuance, placement, registration, custody, clearing, and settlement of the digital certificates. The transition is part of a wider national strategy to digitise financial services within the country.
The BCP has assured investors that the CDA-d retains the same financial nature as the traditional certificate. A Certificate of Deposit of Savings is a fixed-term investment option that offers returns based on the amount, term, and frequency of interest payments. It is considered a low-risk investment, and in Paraguay, these certificates are protected by the Central Bank’s Deposit Guarantee Fund up to a certain limit.
Benefits of the digital transition
According to the Central Bank, this decision aims to reduce manual processes, operational risks, and the time and costs associated with managing physical documents. By centralising the registration and electronic custody of these instruments, the BCP expects to improve the efficiency, transparency, and traceability of financial operations.
“This infrastructure will centralise the registration and electronic custody of the instruments and will facilitate the clearing and settlement of operations carried out by participating entities,” BCP officials explained.
A gradual implementation
The rollout of the digital system will be gradual to ensure a smooth transition for both financial institutions and their clients. For an initial period of at least two years, the new digital CDAs will coexist with the traditional paper certificates. This parallel system will allow all parties to adapt progressively to the new, entirely digital scheme.
The BCP stated that this initiative will expand investment alternatives for the public and supports the ongoing digitisation of financial services in Paraguay. The move is a significant step in the modernisation of the national financial system, aligning it with international trends toward more efficient and secure digital platforms.
Read more: Paraguay Savings Certificates To Go Digital, Promising A More Active Market.
