The digital revolution and financial inclusion in Colombia are experiencing a defining moment with the launch of Bre-B, the instant payment system from the Central Bank (Banco de la República). The system aims to reduce the high reliance on cash, which is still present in 70% of national transactions. However, the government's proposal to impose a 1.5% withholding tax on digital transactions jeopardizes this transformation, which seeks to modernize and formalize the economy.

Bre-B is an inspiring technological leap, mirroring the success of systems like Brazil's Pix and India's Unified Payments Interface. In its first months, it reached over 33 million users and nearly 91 million "keys" linked to accounts—a remarkable increase in a country where the informal economy is dominant.

This system allows for instant transfers, which are free for the first three years, featuring interoperability among various financial institutions, small businesses, and digital service users.

Digitizing the payment system brings efficiency, speed, and traceability. This is key to building strong transactional histories that help formalize entrepreneurs and foster responsible credit relationships. According to the Ministry of Finance, digital transactions grew by 68% in 2024, and mobile banking operations made up 58% of the total in the first half of 2025.

The proposal to impose a 1.5% withholding tax on digital payments aims to standardize a levy already applied to debit and credit cards. However, experts and fintech associations warn that this measure would disincentivize the use of digital platforms, thereby increasing informality and the use of cash—running counter to Bre-B's mission.

For example, under this scheme, a transfer of one million pesos would result in an automatic withholding of 15,000 pesos for the recipient, meaning they would receive 985,000 net pesos. If the business passes this cost on to the consumer, the tax acts like an additional VAT, reducing the incentive to digitize payments.

International experiences, such as with Pix in Brazil, show that rumors or expectations of taxes on digital payments dramatically reduced transactions, freezing the growth of these ecosystems. This suggests that tax policies without a careful focus can halt the digital revolution and harm the most vulnerable segments.

A massive digital system like Bre-B must also face security risks that can affect public trust. Threats range from fraud and identity theft to sophisticated attacks by cybercriminals. Therefore, platforms must adhere to international standards such as PCI DSS and PSD2, and local regulations, supplemented with continuous monitoring based on artificial intelligence to detect anomalous patterns and respond quickly.

In addition to technology, the human factor is critical: constant cybersecurity training, clear incident protocols, and educational campaigns for users are essential to minimize risks. Furthermore, promoting good user practices, such as two-factor authentication and avoiding transactions on insecure networks, reinforces the resilience of the ecosystem.

The success of digital transformation requires a regulatory environment that stimulates technological adoption without imposing fiscal burdens that curb its growth. In this regard, the Colombian government must consider alternatives that do not penalize digital payments and, instead, incentivize greater financial inclusion and economic formalization.

For example, eliminating withholding taxes on digital payments and improving regulation for integrity, transparency, and effective competition can position Colombia as a leader in digital payments in the region, much like the goal of Decree 1692 of 2020, which has boosted online payments from 20% to a projected 50% by 2025.

Furthermore, regulation must be accompanied by the active promotion of digitalization in vulnerable sectors, facilitating access and reducing technological and educational barriers.

Colombia’s unavoidable digitalization is a historic opportunity to overcome informality, boost economic efficiency, and democratize access to financial services. However, the proposed tax on digital payments threatens to curb this wave of progress.

Technology must be seamlessly integrated with cybersecurity and progressive regulation that fosters trust and doesn't impose barriers. Only then will it be possible to mobilize a genuine, inclusive, and sustainable digital transformation that strengthens the Colombian economy and its competitiveness in the global future.