The Colombian authorities are planning to start working on the implementation of a central bank digital currency (CBDC). Besides, the country’s government has presented a regulatory framework for developing the local cryptocurrency industry.
Luis Carlos Reyes, director of Colombia’s National Directorate of Taxes and Customs (DIAN), said that the government plans to create a central bank digital currency. The statement came in an interview the official gave to Semana.
“The purpose of creating such a currency will be to prevent fraud in buying and selling transactions with cash,” the DIAN director commented on the initiative.
In addition, a CBDC will simplify transactions for ordinary customers, which is one of the global monetary policy goals of the country’s new government. The use of digital currency will also help reduce tax evasion, which currently ranges from 6% to 8% of GDP.
Recall that Colombia formed a new government on August 7, led by President Gustavo Petro. The new president has shown interest in digital assets. For example, he supported El Salvador’s cryptocurrency initiatives last year, saying Colombia should produce Bitcoin, not cocaine, using renewable energy sources.
In late July, the Colombian government laid the groundwork for developing a local cryptocurrency market by publishing draft regulations for crypto companies that intend to operate in the country. These are the first steps in establishing a regulatory framework for the local crypto industry. The first results did not take long to come. Two weeks later, the country launched a blockchain project to record land titles. The project aims to resolve the controversy behind the nearly 60-year civil war.
