Colombia to Launch Digital Payments System in 2025, Aiming to Reduce Cash Reliance
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Loading... - Japheth Young
- 09 Sep 2024
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Colombia is set to modernize its financial system with the introduction of an instant digital payment system called Bre-B, scheduled for launch in 2025. According to Ana María Prieto, the director of payment systems at Banco de la República, Bre-B is intended to reduce the country's high reliance on cash, which currently stands at 70%, and improve economic competitiveness through immediate payments and increased interoperability across the financial system.
Bre-B is not solely a product of the central bank but is intended to benefit all Colombians by streamlining payment transactions and boosting financial inclusion. Prieto emphasized that Bre-B represents a significant step in Colombia's digital transformation, with the central bank ensuring that the system operates efficiently and sets regulatory standards to ensure smooth operations and interoperability.
César Ferrari, Colombia’s Financial Superintendent, also noted the importance of mandatory regulations for the success of open finance initiatives. He is working with the Ministry of Finance to propose frameworks for open finance as part of the National Development Plan, aiming for a more accessible and competitive fintech environment. Efforts to simplify regulations are also underway, making it easier for fintech companies to operate without legal complexities.
Bre-B’s development is seen as a crucial move to enhance the formalization of the economy, boost credit availability, and support public policy implementation, all while improving the efficiency of transactions in the country.
