Colombia Plans to Release Digital Currency to Decrease Tax Evasion– Guideline Bitcoin News

The federal government of Colombia exposed it has strategies to release a digital currency. Among the functions of this brand-new currency would be to suppress tax evasion and boost the traceability of deals made by residents. The proposed step would likewise be accompanied by limitations on money payments and deals of over 10 million Colombian pesos ($ 2,400).

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Colombia to Release Its Own Digital Currency

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Lots of nations are now seeking to digitize part of their economies in order to much better comprehend and manage the circulation of cash in their economies. The federal government of Colombia is preparing to release its own digital currency in the future, according to declarations used by Luis Carlos Reyes, head of the DIAN, the Colombian tax authority.

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Reyes informed regional news outlet Semana this would be among the propositions of the recently inaugurated president Gustavo Petro in order to suppress tax evasion, approximated to be in between 6% and 8% of the GDP of Colombia. On this note, Reyes mentioned that the function of this digital currency would be to boost the traceability of these deals so merchants can not avert taxes utilizing money as a payment technique.

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On the efficiency of the step, Reyes approximated:

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This is comparable to 6 or 8 tax reforms that have actually been made in the nation, with which an optimum of 1% or 1.5% of GDP is gotten.

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.(* )Nevertheless, Reyes did not divulge any characteristics of the digital currency or the method which it would work along with the conventional payment systems in the nation.

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Money Constraints

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The intro of the digital currency would likewise be accompanied by other procedures that are presently being studied. Among these procedures is a limitation on payments in money over a particular quantity. Reyes verified this quantity would be 10 million Colombian pesos, or around $2,400.

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Nevertheless, these modifications may interrupt the payment channels of Colombians. While using money for payments was lowered throughout the Covid-19 pandemic, money is presently among the primary approaches of payment in Colombia. Stats from the Reserve Bank of Colombia reveal that the flow of expenses has actually increased to its greatest number in 17 months.

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According to information from the Financial Superintendency, Colombians still choose money as their primary payment technique when spending for transport (94%), groceries (80%), mobile phone top-ups (78%), and lease (77%).

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What do you consider the proposition of a digital currency in Colombia and the proposed limitations on money payments? Inform us in the remarks area listed below.

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Sergio Goschenko.

Sergio is a cryptocurrency reporter based in Venezuela. He explains himself as late to the video game, going into the cryptosphere when the rate increase taken place throughout December 2017. Having a computer system engineering background, residing in Venezuela, and being affected by the cryptocurrency boom at a social level, he uses a various viewpoint about crypto success and how it assists the unbanked and underserved.

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