To better understand and manage the flow of money in their economies, many nations are increasingly attempting to digitize a portion of their economies. According to statements made by Luis Carlos Reyes, the chairman of the DIAN, the Colombian tax authority, the government of Colombia intends to introduce its own digital currency soon.
This, according to Reyes, would be one of President Gustavo Petro’s recommendations to reduce tax evasion, which is thought to account for between 6% and 8% of Colombia’s GDP. Reyes noted that the goal of this digital currency would be to improve the traceability of these transactions so that businesses cannot escape taxes by accepting cash as payment.
In addition to the adoption of digital currency, further policies are also being considered. One of these measures is a limit on cash payments exceeding a particular amount. This sum, according to Reyes, will be 10 million Colombian pesos, or roughly $2,400.
However, these modifications can interfere with Colombians’ payment methods. Cash is currently one of the primary means of payment in Colombia, despite the fact that the use of cash for payments decreased during the Covid-19 pandemic. The Central Bank of Colombia’s statistics indicates that there are now more bills in circulation than there have been in the previous 17 months.The Financial Superintendency found that when it comes to paying for transportation (94%), groceries (80%), mobile phone top-ups (78%), and rent (77%), Colombians still favor cash as their primary means of payment.
