- The proposed measure would also be accompanied by restrictions on cash payments
- They aim to reduce tax evasion
- However, Colombians still prefer cash as their main payment method
The public authority of Colombia uncovered it has plans to send off computerized cash. One of the reasons for this new cash is to control tax avoidance and to upgrade the discernibility of exchanges made by residents.
The proposed measure would likewise be joined by limitations on cash installments and exchanges north of 10 million Colombian pesos ($2,400).
Colombia to Launch Its Own Digital Currency
Numerous nations are presently hoping to digitize a piece of their economies to the more likely to comprehend and control the progression of cash in their economies. The public authority of Colombia is wanting to send off its own advanced cash sooner rather than later, as indicated by articulations presented by Luis Carlos Reyes, top of the DIAN, the Colombian expense authority.
Reyes told nearby media source Semana this would be one of the propositions of the recently introduced president Gustavo Petro to check tax avoidance, assessed to be somewhere in the range of 6% and 8% of the GDP of Colombia.
On this note, Reyes expressed that the reason for this computerized money is to improve the discernibility of these exchanges so shippers can’t sidestep charges involving cash as an installment technique.
Nonetheless, Reyes unveiled no qualities of the computerized money or the manner by which it would work close to the conventional installment frameworks in the country.
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Cash Restrictions
The presentation of the computerized cash would likewise be joined by different measures that are as of now being considered. One of these actions is a limitation on installments in real money over a specific sum. Reyes affirmed this sum would be 10 million Colombian pesos, or roughly $2,400.
In any case, these progressions could upset the installment channels of Colombians. While the utilization of money for installments was decreased during the Covid-19 pandemic, cash is at present one of the primary techniques for installment in Colombia.
Measurements from the Central Bank of Colombia show that the course of bills has ascended to its largest number in 17 months.
As indicated by information from the Financial Superintendency, Colombians actually incline toward cash as their fundamental installment strategy while paying for transportation (94%), food (80%), cell top-ups (78%), and lease (77%).
Source: https://www.thecoinrepublic.com/2022/08/17/colombia-plans-to-launch-digital-currency/