Crypto

Digital currency: Colombia will soon launch its own cryptocurrency

Cryptocurrency is gaining momentum these days. Proof: Many countries are considering integrating digital currency into their economies. Colombia in particular seems to have taken the plunge, if we are referring to this new project of the new Colombian government. Luis Carlos Reyes, director of DIAN (the Colombian tax authority), has actually announced that Colombia will introduce its central bank’s cryptocurrency.

The head of the tax administration of Colombia announces the next launch of a digital currency in his country

Colombia will launch its own digital currency

In office since August 7, the new president of Colombia, Gustavo Petro, has never hidden his interest in digital assets. This article from Decrypt.com mentions that during his presidential campaign last year, Peter once said that Colombia should mine bitcoin. So he sets up the launch of a crypto project in his country, even if it is not quite comparable to bitcoin.

It is indeed a central bank digital currency (CBDC). So it will be a digital version of fiat currency. It will continue to be backed by a central bank, so it will be centralized and controlled by the government.

As of now, the Colombian government has yet to reveal more information about this project. He has yet to explain how this digital currency performs compared to a traditional payment system. Even the name of the cryptocurrency is not disclosed.

Crypto project to combat tax evasion

The main goal of launching this cryptocurrency is to fight tax evasion in Colombia. According to Reyes, the launch of a digital currency will help the state improve the traceability of citizens’ transactions. The fact is that the use of cash currency allows traders to evade taxes. At the very least, all transactions using digital currency will be tracked by the government and taxed.

Accompanying measures are being worked out to launch this digital currency. But the tax chief has already talked about limiting cash payments above a certain amount. After the launch of the digital currency, any payment over 10 million pesos (about $2,400) will no longer be possible in cash. This will be done with the new cryptocurrency.

Tax evasion remains a serious problem in Colombia. To remedy this, the new government is considering using cryptocurrencies. This requires a reform of monetary policy. But the government seems ready to start. A project to keep an eye on…

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Avatar of Ariela RASOANJANAHARI
Ariela RASOANJANAHARI

My name is Ariel, I am 31 years old. I have been working in the field of web writing for 7 years. I discovered trading and cryptocurrency just a few years ago. But this is the universe that interests me a lot. And the topics covered within the platform allow me to learn more. Singer, in my spare time I also cultivate a great passion for music and reading (and animals!

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