The head of the Office of National Taxes and Customs of Colombia (DIAN), Luis Carlos Reyes, said that the country’s government plans to launch its own digital currency in the near future.
Reyes said the goal of Colombia’s state-owned cryptocurrency (CBDC) is to improve transaction traceability so that merchants can’t evade taxes by using cash as a payment method. He is confident that this is equivalent to six to eight tax reforms carried out in the country.
The introduction of digital currency will also be accompanied by other measures. One such measure would be to limit cash payments above a certain amount. Reyes said the limit would be 10 million Colombian pesos ($2,400). However, these changes could disrupt the payment channels of Colombians.
While the use of cash for payments has declined during the COVID-19 pandemic, cash is now one of the main payment methods in Colombia. Statistics from the Central Bank of Colombia show that the circulation of banknotes has reached its highest level in 17 months.
According to the Financial Authority, Colombians still prefer cash as the main method of paying for transport – about 94% of citizens use it to buy groceries – 80%, recharge a mobile phone – 78%, and pay for housing – 77%.
Previously, the Colombian Ministry of Technology and Communications published an 82-page document that collected tips for implementing blockchain in public infrastructures.
Source: Bits
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