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.

Colombia's government may seize funds from bank accounts that have been inactive for a year. 3

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

Colombia's government may seize funds from bank accounts that have been inactive for a year. 4

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 Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

25 minutes ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

2 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

2 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

2 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

3 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

4 hours ago

This website uses cookies.