Colombia Explores Plans for its Own CBDC

Colombia has joined the number of countries exploring plans to launch a CBDC.

Luis Carlos Reyes, director of Colombia’s tax agency, DIAN, recently revealed the country’s desire to launch a central bank digital currency (CBDC.) While speaking to a local magazine, Luis noted that the nation’s new administration was considering plans to improve its payment system by launching a CBDC.

This would mark the first time the South American country has openly talked about launching a CBDC. Colombia’s newly elected president, Gustavo Petro, 62, appears to have a special interest in digital assets. President Gustavo previously urged the country to explore more opportunities in the crypto space and shift from its production of cocaine.

Colombia has taken bold moves to improve its involvement in cryptocurrencies. The Latin American nation recently released a set of guidelines for crypto projects seeking to operate in its region. Some local banks have also struck significant partnerships with crypto giants such as Binance to improve access to digital assets. Last year December, the largest bank in Colombia, Bancolombia, and the New York-based exchange Gemini reached an agreement to allow a limited number of customers to purchase Bitcoin, Litecoin, and Ethereum from their accounts as part of a one-year trial program.

Colombia and its Plans for Crypto Regulation

The Colombian Congress recently addressed a bill that clarified crypto regulation and the duties of crypto exchanges. Representative Mauricio Toro of the Green Party believes cryptocurrency has the potential to create jobs for Colombians, but regulating crypto activities would provide a sense of safety. He wrote on social media,

Colombia has to move forward in regulating this business, which is legal and multi-million dollar, so that jobs and opportunities are created, but also so that it provides peace of mind to Colombians who can buy their assets safely.

The Colombian crypto rules propose different ways to track crypto transactions and address other financial concerns such as money laundering and terrorism financing. The cryptocurrency regulatory bill aims to ensure that cryptocurrency exchanges in Colombia will need to register to provide their services. They must also explain to their customers the benefits, risks, and potential rewards of crypto trading. 

With more than 50 million people living in Colombia, the South American nation has identified cryptocurrency as a possible way to improve its economy and usher in further development.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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