Colombia will prevent tax evasion with national digital currency: Report
A national digital currency would help fight tax evasion in Colombia, which is estimated at 8% of GDP, the head of the Colombian tax authorities and the customs agency declared.
New
As Colombia's economic growth beat expectations in the second quarter, an official from the country's tax and customs agency hinted at some national digital currency plans.
Luis Carlos Reyes, the head of Colombia's National Tax and Customs Authority, has claimed that the government of new Colombian President Gustavo Petro will seek to create a digital currency to prevent illicit financial activities such as tax evasion .
Colombia's digital currency projects are part of the country's new monetary policy measures aimed at increasing transparency in financial transactions, the official said in an interview with local magazine Semana. According to the report, tax evasion in Colombia has so far represented 6% or 8% of the country's gross domestic product.
Reyes also pointed out that a potential digital currency would be a major benefit to the user experience, stating, "Creating a digital currency would make these transactions easier for the consumer."
The official did not specify what type of digital currency exactly the Colombian government will seek to launch, a central bank digital currency (CBDC) or rather a national asset-backed currency similar to the Petro digital currency project of the Venezuela.
Hernando Vargas, Technical Deputy Governor of the Central Bank of Colombia, previously reviewed the implications of a retail CBDC in Colombia in early 2022. The official noted that cash is the preferred instrument. ..
A national digital currency would help fight tax evasion in Colombia, which is estimated at 8% of GDP, the head of the Colombian tax authorities and the customs agency declared.
New
As Colombia's economic growth beat expectations in the second quarter, an official from the country's tax and customs agency hinted at some national digital currency plans.
Luis Carlos Reyes, the head of Colombia's National Tax and Customs Authority, has claimed that the government of new Colombian President Gustavo Petro will seek to create a digital currency to prevent illicit financial activities such as tax evasion .
Colombia's digital currency projects are part of the country's new monetary policy measures aimed at increasing transparency in financial transactions, the official said in an interview with local magazine Semana. According to the report, tax evasion in Colombia has so far represented 6% or 8% of the country's gross domestic product.
Reyes also pointed out that a potential digital currency would be a major benefit to the user experience, stating, "Creating a digital currency would make these transactions easier for the consumer."
The official did not specify what type of digital currency exactly the Colombian government will seek to launch, a central bank digital currency (CBDC) or rather a national asset-backed currency similar to the Petro digital currency project of the Venezuela.
Hernando Vargas, Technical Deputy Governor of the Central Bank of Colombia, previously reviewed the implications of a retail CBDC in Colombia in early 2022. The official noted that cash is the preferred instrument. ..
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