Colombia Explores Creating a CBDC to Combat Tax Evasion

colombia-explores-creating-a-cbdc-to-combat-tax-evasion

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.

Colombia is considering the introduction of a central bank digital currency (CBDC) to facilitate transactions and reduce tax evasion.

The information was confirmed by Luis Carlos Reyes, head of the Colombian Tax and Customs Office, who did not provide details on the proposal in an interview with the local magazine Semana on Monday.

As part of a tax reform program pushed by President Gustavo Petro, who took office in early August, the government also plans to ban cash transactions for amounts surpassing 10 million Colombian pesos ($2,350).

“One of the important objectives is that when payments are made for a certain amount, they will be recorded in an electronic medium,” Reyes said.

Colombia joins other Latin American countries working on their respective CBDCs, including Brazil, Mexico and Peru.


Sign up for Money Reimagined, our weekly newsletter exploring the transformation of value in the digital age.

By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.

DISCLOSURE

Please note that our

privacy policy,

terms of use,

cookies, and

do not sell my personal information

has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a

strict set of editorial policies. CoinDesk is an independent operating subsidiary of

Digital Currency Group, which invests in

cryptocurrencies

and blockchain

startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of

stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.

Andrés Engler is a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.