Banco de Bogotá will be the first commercial bank in Colombia to allow its users to make value transactions with cryptocurrencies next month.
Since the beginning of the year, the Financial Superintendence of Colombia is promoting a regulatory sandbox to allow financial services companies with cryptocurrencies to operate in the country and forge new alliances with banks and financial institutions for the development of this industry within a regulated environment. In this sense, the Superintendence approved the development of several pilot projects to facilitate transactions and commercial operations with cryptocurrencies and digital assets.
To date, several commercial banks and even Colombia’s Central Bank, Banco de la República, have been participating in a regulatory sandbox known as laArenera.
Now him Bank of Bogotaone of the largest commercial banks in Colombia and the oldest in the country with more than 150 years of experience, will be the first to allow its clients to carry out value transactions through cryptocurrencies.
The news was announced by Alejandro Beltrán, manager of Buda.com in Colombia, in statements to CoinDesk. As reported, Banco de Bogotá will allow selected customers to send and withdraw money (cash-in and cash-out) with cryptocurrencies through this digital platform.
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In the sandbox race
In the month of March, several crypto industry participants submitted their proposals to enter the regulatory sandbox sponsored by the Colombian government, but only 10 of them were approved. Banco de Bogotá is one of the banking entities that entered the pilots approved by the Financial Superintendence of Colombia, with plans to explore and develop a new business model associated with crypto assets.
Transactions and commercial operations with cryptocurrencies, as reported by Beltrán, will begin next August, although the bank is still evaluating the terms and conditions to be implemented to allow its selected clients to carry out these transactions from the channels enabled by the entity.
The bank’s idea is to delve into the digital ecosystem and crypto assets, to understand how it works and contribute to the nation in creating an appropriate regulation for this rapidly growing and adopting market.
Colombia is one of the Latin countries with the greatest interest and adoption of Bitcoin and cryptocurrencies, which is driving the government and national banks to explore the crypto space to understand the potential advantages and benefits it offers and also the associated risks. On the other hand, Banco de Bogotá, the oldest in the country, has more than 19 million users At national and international level.
Colombia and cryptocurrencies
Colombia is taking great steps towards innovation and digital transformation, so its arrival in the world of cryptocurrencies was imminent. Participation in the crypto industry, and possibly its subsequent regulation within the Colombian legal and regulatory framework, is essential to encourage the creation and development of more efficient, transparent, safe and reliable financial products and services.
Through the regulatory sandbox, Colombia wants, among other things, to explore traceability and risk management using technological innovations such as cryptocurrencies and technology blockchainwhich is also playing a very important role in the development of the country.
Last week, Banco de la República, Banco Davivienda and the IDB Group received approval from the Financial Superintendence to carry out the issuance of the first real bond based on blockchain technology in Latin America.
Likewise, the Mayor’s Office of Bogotá is implementing the blockchain to create a new management system that allows it to combat corruption and crime. Blockchain also plays an important role within the educational sector, to certify the legality of university degrees, among other things.
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