According to Leonardo Villar, the manager of the Central Bank of Colombia, they are studying the possibility of creating a digital currency. This instrument will be launched by the organization to unify the various digital wallets within the country and make them easier to use.
Central Bank of Colombia Studies Digital Currency Issuance
In order to be competitive with digital assets and cryptocurrencies, many countries around the world have begun to prepare to create digital currencies. Leonardo Villar (manager of the Central Bank of Colombia) recently revealed that his organization is studying the possibility of issuing a digital currency. Villar, manager of the Central Bank of Colombia explained during a Cartagena banking convention that such currencies were under review.
The officer was not able to provide any further details on the nature or structure of the new currency. However, he said that Brazil’s pilot experience and efforts towards the creation of the digital real by the Central Bank of Digital Currency (CBDC), were two of the things the bank is examining.
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.
Hypothetical Digital Peso Objectives
Villar stated that one of the main goals of the currency is to allow digital wallets in different countries to work together. This design, according to Villar is very inefficient. It does not permit users of the wallets to pay state-related expenses such as taxes.
Luis Carlos Reyes from the DIAN (the Colombian tax authority) spoke earlier this week about the reasons for the issuance a national digital currency. Reyes said that the currency would allow for greater control of payments and transactions. It would, ostensibly, allow the country curb tax evasion which can be estimated at up to 8 percent of its GDP.
The regulators are also studying ways to limit the cash payments to encourage the adoption of digital and trackable options.
How do you feel about the digital currency studies being conducted by the Central Bank of Colombia? Leave a comment below.
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