Colombian Central Bank Is Studying the Creation of a Digital Currency – Bitcoin News

The Colombian central bank is looking into launching a digital currency, according to a statement from its manager Leonardo Villar. The organization is evaluating the rollout of the tool as a means of unifying the country’s different digital wallets, making them interoperable and easier for customers to use.

Colombian central bank studies digital currency issuance

Many governments around the world are preparing to launch digital currencies to compete with cryptocurrencies and other assets. The manager of Colombia’s central bank, Leonardo Villar, recently announced that the organization is studying the issuance of digital currencies. At a banking conference in Cartagena, Villar explained that banks are reviewing the functionality and convenience of the currency.

While the official did not provide further details on the structure or nature of the announced currency, he did reveal that one of the lessons the bank is watching closely is Brazil’s efforts to pilot and develop a digital currency in real, neighboring countries. Proposed Central Bank Digital Currency (CBDC).

Brazil’s digital currency will be able to be used as collateral by the country’s financial institutions to issue their own stablecoins, maintaining private banks as part of the financial system.

Assume digital peso target

According to Villar, one of the biggest goals of the currency is to make the different digital wallets available in the country interoperable. This current design is said to be very inefficient and does not allow users of these wallets to pay state-related fees such as taxes.

Earlier this week, Luis Carlos Reyes, head of the Colombian tax agency DIAN, also spoke about the motivation for issuing a national digital currency. Reyes explained that the currency will help the country better control transactions and payments. Ostensibly, this would allow the country to curb tax evasion, which is estimated to account for as much as 8 percent of the country’s GDP.

Likewise, regulators will look into setting limits on the amounts that can be paid in cash to incentivize the use of digital, traceable alternatives.

What do you think of the research conducted by the Colombian central bank to launch a digital currency? Let us know in the comments section below.

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself being late to the game, entering the crypto space when prices rose in December 2017. With a computer engineering background, living in Venezuela, and being affected by the cryptocurrency craze on a social level, he offers a different perspective on the success of cryptocurrencies and how it can help the unbanked and underserved.

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