Market

Colombia’s government may seize funds from bank accounts that have been inactive for a year.

The budget law for the coming year, which was recently approved by Colombia’s representative chamber, includes a contentious provision that allows the state to seize a bank customer’s funds for budgetary purposes. These funds may be retrieved under certain legal circumstances if the account holders can prove their ownership.

The new budget law, which was approved last week by Colombian legislators in an express vote, includes a contentious provision that allows the government to seize a client’s funds that have been inactive in bank accounts for more than a year. The procedure is outlined in Article 81 of the aforementioned budget law. It reads:

The balances of the checking or savings accounts that have been inactive for a period of more than one year and do not exceed the value equivalent to 322 UVR ($24.40), will be transferred by the holding financial entities… in order to finance appropriations of the General Budget of the Nation.

However, if the account holder discovers that a request for these funds has been made, the authorities must reimburse the funds with the interest accumulated, just as if the funds were held in a depository financial institution. This budget law was approved in a hurry, according to many representatives and analysts, and it was not thoroughly analyzed.

Cryptocurrency as an Alternative

While the proposed article does not affect all account holders and may have a minor impact, it does spark a discussion about the power that the Colombia government and central banks have over the use of fiat money in the country. This could encourage the use of cryptocurrencies or other alternatives to traditional financial instruments as investment and savings tools.

Colombia is one of the Latin American countries that uses the most cash, and cryptocurrency companies must try to meet the needs of this market, which wants to exchange fiat cash money for cryptocurrencies. This is why the country already has 50 cryptocurrency ATMs aimed at these use cases, an unusually large number for a country not known for its cryptocurrency appeal.

It remains to be seen whether the government’s moves and the advancements of cryptocurrency companies in the country will result in a wave of adoption in the future.

Patrick

Coincu News

Victor

Recent Posts

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

44 minutes ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

2 hours ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

3 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

4 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

4 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

5 hours ago

This website uses cookies.