Luis Carlos Reyes, head of the Colombian Tax and Customs Authority, said that a national digital currency would help curb tax evasion.
One of the important factors that upset the calculations in the national economies is tax evasion. Colombia also relies on the digital currency to keep its Gross Domestic Product (GDP) numbers in check.
Colombia to Prevent Tax Evasion with Digital Currency
Luis Carlos Reyes, head of the Colombian National Authority for Taxes and Customs, claimed that the government of newly elected Colombian President Gustavo Petro will seek to create a digital currency to prevent illegal financial activities such as tax evasion.
According to Carlos Reyes’ statements, an estimated 8 percent of the country’s GDP is lost due to tax evasion. As Colombia’s economic growth exceeded expectations in the second quarter, it also wants to eliminate this disadvantage. Their plan is to prevent tax evasion with the national digital currency.
The official said Colombia’s digital currency plans are part of the country’s new monetary policy measures aimed at increasing the transparency of financial transactions. Tax evasion in Colombia is estimated to have so far accounted for 6 percent or 8 percent of the country’s gross domestic product, according to the report.
Reyes, who did not explain exactly what kind of digital currency the Colombian government intends to issue, drew attention to the potential of the digital currency and used the following statements:
“The creation of a digital currency will make transactions easier for the consumer.”
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