Colombia Explores Creating a CBDC to Combat Tax Evasion

As part of a tax reform program, the government of the South American country also plans to impose limits on cash transactions.

AccessTimeIconAug 17, 2022 at 3:34 p.m. UTC
Updated May 11, 2023 at 6:12 p.m. UTC

Colombia is considering the introduction of a central bank digital currency (CBDC) to facilitate transactions and reduce tax evasion.

The information was confirmed by Luis Carlos Reyes, head of the Colombian Tax and Customs Office, who did not provide details on the proposal in an interview with the local magazine Semana on Monday.

As part of a tax reform program pushed by President Gustavo Petro, who took office in early August, the government also plans to ban cash transactions for amounts surpassing 10 million Colombian pesos ($2,350).

“One of the important objectives is that when payments are made for a certain amount, they will be recorded in an electronic medium,” Reyes said.

Colombia joins other Latin American countries working on their respective CBDCs, including Brazil, Mexico and Peru.


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Andrés Engler

Andrés Engler was a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.