The Central Bank of Colombia is studying the launch of a digital currency, according to statements by its director, Leonardo Villar. The organization assesses the launch of this instrument as a way to unify the country’s various digital wallets, making them interoperable and easier to use for customers.
The Central Bank of Colombia studies the issuance of digital currency
Many governments around the world are preparing to launch digital currencies to compete with cryptocurrencies and other assets. Leonardo Villar, director of the Central Bank of Colombia, recently announced that the organization is studying the issuance of a digital currency. At a banking convention in Cartagena, Villar explained that the functions and convenience of such a currency were being reviewed by the bank.
Although the officer did not give further details on the structure or nature of the announced currency, he revealed that one of the experiments the bank is studying closely is the one that Brazil tried with the pilot project. and the work carried out for the development of digital technology. real, the digital currency offered by the central bank (CBDC) of the neighboring country.
Brazil’s digital currency will be able to be used as collateral by financial institutions in the country to issue their own stablecoins, keeping private banks as part of the financial system.
Objectives of a hypothetical digital peso
According to Villar, one of the main goals of the currency would be to make the various digital wallets available in the country interoperable. This current design is considered very inefficient and does not allow users of these wallets to pay for state-related expenses such as taxes.
Earlier this week, Luis Carlos Reyes, head of DIAN, the Colombian tax authority, also discussed the motivations that would follow the issuance of a national digital currency. Reyes explained that the currency would help the country have more control over transactions and payments. This ostensibly would allow the country to curb tax evasion, which is estimated to account for up to 8% of the country’s GDP.
Similarly, regulators will study to set limits on the amount of money that can be paid in cash to incentivize the use of digital and traceable alternatives.
What do you think of the studies that the Central Bank of Colombia is carrying out to launch a digital currency? Tell us in the comments section below.
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