Colombia is in the pilot phase. The companies Ripple and Peersyst issued a press release in June 2023 to announce a CBDC pilot collaboration with the Banco de la República de Colombia and the Ministry of Information and Communications Technologies, but the project closed at the end of the year. In a 2024 report, the Banco de la República de Colombia said, “there are not sufficient reasons for the issuance of [a CBDC] (retail or wholesale) in Colombia.”

CBDC History and Development

In 2022, the Banco de la República de Colombia released a PowerPoint presentation on international CBDC development and what a CBDC might mean for Colombia. The presentation noted, “Most central banks are still unclear about the specific objective of a CBDC.” However, the presentation also noted that the central bank had “advanced a preliminary analysis on the convenience and risks of issuing a central bank digital currency.” For example, the central bank noted that one lesson “from the international experience is to avoid issuing a retail CBDC and having to suspend it later due to lack of acceptance.”

In 2023, the companies Ripple and Peersyst issued a press release to announce its CBDC pilot collaboration with the Banco de la República de Colombia and the Ministry of Information and Communications Technologies. The pilot ran in a controlled environment and was shut down at the end of 2023.

In July 2024, the Banco de la República de Colombia published a report titled, “Relevance and Risks of Issuing a Central Bank Digital Currency in Colombia.” Ultimately, the report found that “there are not sufficient reasons for the issuance of [a CBDC] (retail or wholesale) in Colombia.” Although the central bank wrote that a CBDC could improve financial inclusion, facilitate competition, and maintain access to central bank money, it said these goals could be better addressed with alternative policies. However, the central bank will continue to study the potential impacts a CBDC might have.

Human Rights and Civil Liberties Concerns

Columbia is generally considered free, but many issues are still present in the country. Although improvements have been made over the years, Freedom House notes that “Colombia faces enormous challenges in consolidating peace and guaranteeing political rights and civil liberties outside of major urban areas.” As it relates to the issuance or use of a CBDC, the most relevant concerns surround issues of widespread corruption.

“Corruption occurs at multiple levels of public administration,” according to Freedom House. In fact, Freedom House further reported that “more than 200 individuals were sentenced on corruption charges [in 2022], including a group of corrupt public officials led by a former congressperson.” The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.