The federal government of Colombia disclosed it has strategies to launch a digital currency. One of the purposes of this new currency would be to control tax evasion and increase the traceability of transactions produced by citizens. The proposed evaluate would also be accompanied by limitations on dollars payments and transactions of about 10 million Colombian pesos ($2,400).

Colombia to Launch Its Very own Digital Forex

Several nations around the world are now searching to digitize portion of their economies in get to far better understand and command the stream of money in their economies. The governing administration of Colombia is planning to launch its have electronic forex in the around upcoming, according to statements made available by Luis Carlos Reyes, head of the DIAN, the Colombian tax authority.

Reyes instructed nearby information outlet Semana this would be just one of the proposals of the newly inaugurated president Gustavo Petro in get to suppress tax evasion, approximated to be among 6% and 8% of the GDP of Colombia. On this be aware, Reyes stated that the purpose of this digital currency would be to greatly enhance the traceability of these transactions so merchants can not evade taxes using cash as a payment method.

On the performance of the evaluate, Reyes believed:


This is equal to 6 or eight tax reforms that have been designed in the nation, with which a highest of 1% or 1.5% of GDP is received.


However, Reyes did not disclose any traits of the electronic currency or the way in which it would function together with the conventional payment methods in the place.


Cash Limits

The introduction of the electronic forex would also be accompanied by other actions that are presently getting examined. A single of these steps is a restriction on payments in cash in excess of a sure amount of money. Reyes verified this amount would be 10 million Colombian pesos, or roughly $2,400.

Even so, these modifications may well disrupt the payment channels of Colombians. Though the use of funds for payments was reduced for the duration of the Covid-19 pandemic, dollars is at present 1 of the principal solutions of payment in Colombia. Figures from the Central Bank of Colombia show that the circulation of payments has risen to its best range in 17 months.

In accordance to details from the Economic Superintendency, Colombians nevertheless choose income as their key payment system when paying for transportation (94%), groceries (80%), cell cellular phone top rated-ups (78%), and lease (77%).

What do you assume about the proposal of a digital forex in Colombia and the proposed constraints on cash payments? Notify us in the comments part under.

Sergio Goschenko
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