Columbia moves to explore CBDC

The Columbia government has commenced plans to launch a Central Bank Digital Currency (CBDC). Colombia’s tax agency director, Luis Carlos Reyes, made this known in a media statement on Tuesday. According to him, the state’s new leadership is working on plans capable of improving the payment system. This, according to him, prompted the decision to explore the CBDC.

The President of the Country, Gustavo Petro, is a staunch advocate of virtual assets, thereby facilitating the exploration of the trend in the country. As revealed, this is the first time the South American country is openly discussing the prospect of launching a CBDC. President Petro had earlier encouraged the Colombian government to switch its concentration away from cocaine production and explore the substantial alternatives created by cryptos.

The South American country has taken a giant step to boost its participation in crypto activities. The Columbia government recently released regulations for crypto firms seeking to operate in its region.

Some local banks in the state have partnered with crypto firms such as Binance to improve their access to digital assets. Last December, Bancolombia, Colombia’s biggest bank, partnered with Gemini, a New York-based exchange. Both establishments agreed to allow a certain number of customers to acquire Bitcoin, Litecoin, and Ethereum from their accounts as part of a one-year trial program.

The Colombian Congress recently addressed a bill about crypto regulation and the responsibilities of crypto exchange. The green party representative, Mauricio Toro, believes that adopting crypto will create job opportunities for Colombian citizens. He also believes that regulating crypto activities will provide a sense of security.

The authorities have now decided to regulate the industry fully. As revealed, it intends to harness the virtual economy to create more job opportunities for citizens. The administration is also ensuring Colombians can safely invest in crypto assets.

The Colombian crypto regulation provides various methods by which the country can monitor crypto transactions. It also handles other financial difficulties such as money laundering and terrorism financing. The crypto regulatory bill also intends to register all crypto firms in Colombia before they can render their services. 

Also, all registered firms must expose the benefits, risks, and rewards of trading crypto to their customers. With a population of about 50 million people, Columbia has recognized the adoption of crypto as a means to boost its economy and welcome more development.

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