Colombia Central Bank Advises Limits on CBDC Holdings and Spending!

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The Central Bank of Colombia has advised that Central Bank Digital Currency (CBDC) holdings and spending must be limited to avoid potential hazards to the financial system. The bank emphasized that the CBDC should primarily be used by financial institutions, while non-financial entities or individuals should not be allowed to hold a large number of digital currencies. Colombia’s central bank is currently researching the feasibility of CBDC issuance, but it is cautious about the potential risks and is taking measures to mitigate them through careful planning and regulation. A contingency plan to manage potential risks associated with CBDC’s adoption has also been proposed.