Bogotá confirms: no additional taxes on Bre-B or crypto wallets

The Bogotá city government has officially clarified its position regarding the application of taxes on transactions carried out with the local stablecoin Bre-B or via digital wallets. In a statement published on August 5, 2026, Bogotá’s Secretary of Finance, Ana María Cadena , confirmed that no additional tax would be levied on these transactions. This announcement is part of a tax reform aimed at modernizing Colombia’s tax system and removing barriers for small businesses. Bre-B, developed by Colombia’s central bank (Banco de la República), is used for digital payments in the country. According to authorities, this measure aims to encourage the adoption of electronic payment solutions and simplify tax compliance for merchants. What happened Secretary Ana María Cadena explicitly stated that the ICA (Industry and Commerce Tax) would not apply to transactions conducted with Bre-B or other digital wallets. This decision is part of a broader tax reform aimed at simplifying tax obligations for merchants and fostering financial innovation. Bogotá joins other Latin American cities, such as Buenos Aires and Mexico City, which have already adopted similar measures to support innovation in digital payments. No date has been set for the entry into force of this exemption, but it will apply retroactively from January 1, 2026. The reform also includes tax relief for micro and small businesses using digital payment solutions. The Bre-B stablecoin, launched in 2024, has a market capitalization of $120 million and is used by over 500,000 people in Colombia. No mention was made of potential taxes on capital gains from cryptocurrencies, leaving this area unclear. Why this decision matters This tax exemption is part of a regional trend aimed at stimulating the adoption of digital assets while avoiding market distortions. In Colombia, where the use of cryptocurrencies is legal but unregulated, this measure could reduce compliance costs for merchants accepting Bre-B. It could also accelerate the adoption of the stablecoin as an everyday payment method and encourage innovation in decentralized payment solutions. However, the lack of a clear framework on capital gains could create uncertainty for investors in non-stable cryptocurrencies. This tax ambiguity could deter some institutional players from entering the Colombian market, limiting the sector’s growth potential. On a sectoral level, this announcement could strengthen Bre-B’s position as the dominant stablecoin in Colombia, with potential growth for local DeFi protocols. Exchange platforms active in the region, such as Binance or Bybit, could indirectly benefit from this. At a broader scale, if other Latin American countries follow Bogotá’s example, this could accelerate the adoption of stablecoins in the region, reducing dependence on the US dollar. Key points to watch Adoption of Bre-B: If the stablecoin reaches a market capitalization of $200 million by the end of 2026, this would confirm its mass adoption. Regulator reactions: Colombia’s Financial Superintendence (Superintendencia Financiera de Colombia) could issue additional guidelines on non-stable cryptocurrencies by the end of the year. Evolution of taxation: A future administration could reverse this exemption, especially if tax revenues are affected. Market impact: While this measure is specific to Colombia, it could inspire other countries in the region to adopt similar policies. Market centralization: Bre-B, issued by the central bank, could centralize the payments market and limit innovation in decentralized solutions.