Colombian government: Bitcoin and other digital currencies are illegal

According to a report by PanAm Post, a local media outlet in Colombia, the government of the country has declared that a number of digital currencies, including Bitcoin, are illegal. The head of the country’s regulatory department has recently announced and confirmed the news.

Earlier, the Superintendencia de Sociedades, an organization under the Colombian Ministry of Commerce, Industry and Tourism (MCIT), announced that the use of all digital currencies, including Bitcoin, is strictly prohibited in Colombia, and the only legal currency in the country is the peso.

The news was reportedly announced by Francisco Reyes Villamizar, head of Superintendencia. Villamizar first introduced the concept of an "investment club" before declaring the illegal nature of Bitcoin. Members of these clubs usually attract more people to join and invest, promising them that their returns will double within two months. As for the relationship between Bitcoin and such activities, it is not clear at this time, and the article does not provide a detailed explanation.

Villamizar publicly stressed that the only organization with the legal right to issue currency in the country is the Central Bank of Colombia (Banco de la República). According to reports, the Central Bank of Colombia has also repeatedly declared that it is the only orthodox institution that issues currency.

Doubts continue

It’s clear that the Colombian government is not too keen on Bitcoin, but it’s unclear whether the government will take any legal action in response to these remarks. However, the statement was met with skepticism, even among the country’s citizens.

PanAm Post interviewed business consultant Jorge Eduardo about this incident. He believes that currency is more than just coins and banknotes:

The government’s emphasis on the peso as the only legal form of payment is a denial of everyday transactions: in daily life, people often trade in an old car for a new one or a house for an apartment. Bitcoin has the same value attributes as the peso, and is no different from the car or house mentioned here.

At the end of the article, PanAm Post made a simple analysis of the value of Bitcoin. Currently, the price of Bitcoin has exceeded $1,000 and is likely to reach $1,200 this year. PanAm Post believes that global turmoil and economic instability are important factors supporting the price of Bitcoin.