The authorities of Colombia has revealed that it’s planning to launch a digital foreign money to curb tax evasion and improve the traceability of residents’ transactions
The plan for the digital foreign money was revealed via an announcement given by Luis Carlos Reyes, who’s the top of the Colombian tax authority DIAN. The transfer comes amid a transfer by many international locations in the direction of digitizing their economies to higher perceive and management the circulate of cash.
According to Reyes, this might be one of many proposals of the newly inaugurated president Gustavo Petro to curb tax evasion which is at the moment estimated to be between 6% and eight% of Colombian GDP. In essence, the digital foreign money will improve the traceability of retailers’’ transactions to be sure that they don’t evade taxes.
Cash funds restrictions
Among the opposite measures anticipated to observe the introduction of the digital foreign money is the restriction of money funds over $2,400 (10 million Colombian pesos).
While the federal government is targeted on curbing tax evasion, the adjustments may disrupt the fee channels of a majority of Colombians, particularly after the money crunch brought on by the Covid-19 pandemic. Colombians are additionally at the moment depending on money transactions and shifting to digital funds may very well be troublesome.
According to information from the Financial Superintendency, Colombians favor money as their fundamental technique of fee technique for groceries and transportation.
But the Central Bank of Colombia has proven that the circulation of payments has shot to the heist stage previously seventeen months.
