South America’s Second-Most Populous Country Considering Central Bank Digital Currency, Says Tax Agency Official

August 19, 2022 The Daily Hodl

Colombia to prevent tax evasion with national digital currency: Report

August 17, 2022 Coin Telegraph

CBDC

A national digital currency would help curb tax evasion in Colombia, which is estimated at up to 8% of GDP, the head of Colombia’s tax and customs agency said.

Amid Colombia’s economic growth beat expectations in the second quarter, an official at the country’s tax and customs agency has hinted at some national digital currency plans.

Luis Carlos Reyes, the head of the Colombian Tax and Customs National Authority, claimed that the government of newly inaugurated Colombian President Gustavo Petro will seek to create a digital currency to prevent illicit financial activity like tax evasion.

Colombia’s digital currency plans are part of the country’s new monetary policy measures aiming to increase transparency of financial transactions, the official said in an interview with the local magazine Semana. According to the report, tax evasion in Colombia is estimated to account for 6% or 8% of the country’s gross domestic product so far.

Reyes also pointed out that a potential digital currency would be a major benefit for user experience, stating: “The creation of a digital currency would make these transactions easier for the consumer.”

The official did not specify what kind of digital currency exactly the Colombian government will be looking to launch, a central bank digital currency (CBDC) or rather an asset-backed national currency similar to Venezuela's Petro digital currency project.

Hernando Vargas, technical deputy governor at the central bank of Colombia, previously considered implications of a retail CBDC in Colombia earlier in 2022. The official noted that cash is the preferred instrument of low-cost payments in Colombia, pointing to potential threats from cryptocurrencies and stablecoins in certain circumstances. He stated:

“A line of defense against a widespread use of cryptocurrencies and stablecoins is weaker in Colombia than in other jurisdictions and the discussion about the adoption of a retail CBDC becomes particularly interesting.”

The news comes shortly after new Colombian president Petro has sworn into office on Aug. 7. As previously reported, Petro is known for expressing support for cryptocurrencies like Bitcoin (BTC). Back in 2017, Petro suggested that BTC could remove power from the government and return it to the people. “Virtual currency is pure information and therefore energy,” Petro said at the time.

According to the latest reports, Colombia’s economy beat expectations in the second quarter in a boost for Petro’s government, with GDP reportedly rising 12.6% versus the expected 12.1% growth.

BNB Chain aims to raise 30K new Web3 developers across Latin America in 2022

August 17, 2022 Coin Telegraph

Binance

BNB Chain prepares to launch a Web3 development course for Latin American students as the region continues to be a hub for adoption and crypto-related activity.

BNB Chain, a blockchain network created by crypto exchange Binance, and Latin America-focused education platform Platzi announced that they will be launching a Web3 development course for the region.

By the end of the year, the course aims to be accessible to 30,000 students. Gwendolyn Regina, investment director at BNB Chain, told Cointelegraph that this course focuses on growing the skills of developers.

“This is going to be the major educational resource available in Spanish for Web2 developers to build on Web3 with BNB Chain.”

This development is an effort to push wider adoption of blockchain technology and Web3 education in the region. Generally, the greatest barriers of entrance into the industry are accessibility and education, along with unclear regulations from local governments.

Even among those who have already purchased crypto, the understanding of how the technology works is often misunderstood. According to a survey from the Motley Fool, nearly 10% of respondents who own crypto said they don’t understand how it actually works.

Therefore, education is key. It’s even more important in regions like Latin America, where crypto has the potential to empower the local population outside of traditional, messy financial institutions. Regina told Cointelegraph:

“If we increase the accessibility to resources to build Web3 tools on BNB Chain, we can significantly support the development of the region.”

In El Salvador, the first country to make Bitcoin legal tender, efforts to educate the general public on crypto are underway. The country introduced a grassroots diploma program called Mi Primer Bitcoin, or “My First Bitcoin,” which aims to increase crypto literacy among young people.

To encourage participation in the new BNB Chain course, those attending the BNB Chain Developer Camp this September in Bogota, Colombia, will have a chance at a limited number of scholarships for the new online course.

Latin America is a growing hub for innovation and adoption of crypto and Web3 developments. Earlier this month, Binance and Mastercard released prepaid crypto cards in Argentina.

“Latin America needs to balance the retail experience with the building potential. There’s a big community that knows about crypto and its utility by daily experience,” says Regina.

Colombia