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The Central Bank of Colombia is studying the launch of a digital currency, according to statements from its head, Leonardo Villar. The organization considers the launch of this instrument as a means of unifying the various digital wallets in the country, making them interoperable and easier to use for customers.
Many governments in the world are preparing to launch digital currencies to compete with cryptocurrencies and other assets. Leonardo Villar, head of the Central Bank of Colombia, recently announced that the organization is studying the issuance of a digital currency. During a banking convention in Cartagena, Villar explained that the functions and convenience of such a currency were assessed by the bank.
While the officer did not provide further details on the structure or nature of the announced currency, he did reveal that one of the experiences the bank is closely watching is one that Brazil has attempted with the pilot and work on the development of the digital real, the proposed central bank digital currency ( CBDC) to 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, maintaining private banks as part of the financial system.
According to Villar, one of the biggest goals of the currency will be to make the different digital wallets available in the country interoperable. This current design is said to be highly inefficient, and does not allow users of these wallets to pay for government expenses such as taxes.
Earlier this week, Luis Carlos Reyes, head of DIAN, the Colombian tax authority, also spoke about the motivation behind the issuance of a national digital currency. Reyes explained that the currency would help the country have more control over transactions and payments. This will apparently allow the country to curb tax evasion, which is estimated to represent up to 8% of the country’s GDP.
In the same way, the supervisory authorities will study to establish limits on the amount of money that can be paid in cash to encourage the use of digital, traceable alternatives.
What do you think about 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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