Colombia’s oldest commercial bank to test cryptocurrency operations

Banco de Bogotá will participate in a pilot cryptocurrency project overseen by Colombia’s Financial Management. The bank will assess business models and risks associated with handling digital assets, according to local publication Portafolio.

The Financial Management’s sandbox will begin in March. The oldest commercial financial institution in the country, founded in 1870, will involve a limited group of selected clients who will be able to conduct crypto-asset transactions within set volume limits.

The bank will allow them to buy and sell crypto assets for fiat currency. Operations will be available through the institution’s mobile and virtual banking channels.

“Our participation in the Financial Management’s sandbox complements the initiatives we are developing in the digital transformation process, where we continually explore technological innovations, aiming to implement new products and services in a flexible, secure and reliable environment,” said Oscar Bernal Quintero, the bank’s vice president of technology.

Another key motivation for taking part in the pilot is the opportunity to participate in shaping the cryptocurrency regulation rules in the country, which is important for transformations in the financial system.

In 2020, Colombians ranked third by total trading volume on LocalBitcoins’ P2P platform, behind residents of Russia and Venezuela.

Colombia’s president Iván Duque Márquez has previously expressed support for cryptocurrencies and blockchain companies.

In January 2020, a government site posted a copy of the Bitcoin white paper after the self-proclaimed creator of the first cryptocurrency, Craig Wright, attempted to claim intellectual property rights in the document.

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