Colombia Plans to Introduce Central Bank Digital Currency (CBDC)
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CBDC For Better Traceability
According to Reyes, this would be one of President Gustavo Petro's recommendations to reduce tax evasion, estimated to amount to between 6% and 8% of Colombia's GDP. Reyes mentioned that the goal of this digital currency would be to improve the traceability of these transactions so that businesses cannot escape taxes by accepting cash as a form of payment. Reyes remained mum regarding the characteristics of the virtual currency or how it will integrate with the nation's established payment methods.
Restricting Cash Payments
The adoption of the digital currency would be complemented by additional policies that are now under consideration. Restricting cash payments over a specific amount is one of these measures. This sum, according to Reyes, will be 10 million Colombian pesos, or roughly $2,400. However, these modifications can interfere with Colombians' payment methods. Although the Covid-19 pandemic limited cash usage for purchases, money is still one of Colombia's primary payment options today.
The Central Bank of Colombia's statistics indicates that there are now more bills in circulation than there have been in the previous 17 months.