Colombia will soon adopt a digital currency aimed at reducing tax evasion

Colombia to Soon Get Digital Currency Aimed at Slashing Tax Evasion Crimes

Tax evasion is a major problem in Colombia and is estimated to account for up to eight percent of the country’s gross domestic product (GDP) so far. To curb tax evasion crimes in the Latin American nation, Colombia has decided to plan a roadmap for its national digital currency. Under the leadership of newly elected Colombian President Gustavo Petro, the Colombian government is banking on the use of digital currency to stem the rise of financial crimes in the country.

The creation of this digital currency aims to replace cash payments around taxes with this digital currency, all within the framework of the revised new currency policy, quoted Luis Carlos Reyes, head of the Colombian Tax and Customs National Authority. As stated in an interview.

For now, it remains unclear whether Colombia is exploring a CBDC-type national digital currency or an asset-backed national currency similar to Venezuela’s Petro digital currency project.

CBDC or Central Bank Digital Currency (CBDC) is a blockchain-based payment solution controlled and controlled by central banks. Currently, India, Jamaica and China are among the many other nations that are working on their CBDCs.

For now, Colombia is waiting to see what changes its crypto-friendly president brings to the existing financial system there.

Back in 2017, Colombian President Petro called Bitcoin a tool that would take power back from the government and put it in the hands of the people, reports CoinTelegraph said

As of now, Colombia does not accept any cryptocurrency as a payment option to its fiat peso.

Earlier this year, the Colombian Tax Authority also In the report Taxpayers are reminded that they must start registering cryptocurrencies in their statements from this year.

It is estimated that more than 3.1 million people, 6.1 percent of Colombia’s total population, owned cryptocurrencies in 2021. Triple-A,


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