Colombia’s first commercial bank, Banco de Bogotá, is taking part in a cryptocurrency-related pilot project. A report unveiled this news on March 1, noting that the Financial Superintendence of Colombia (FSC) is behind this trial. Reportedly, this project aims to foster the development of a joint test space for digital assets between the country’s digital ecosystem and the National government.
According to the report, the project “laArenera” kicked off at the start of this month. Through this initiative, Banco de Bogotá will study the business model and the risks associated with managing cryptocurrencies. To achieve this feat, the bank will work with select clients, who will be tasked with executing transactions with various limits.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Reportedly, the chosen clients will be able to make crypto deposits and withdrawals through Banco de Bogotá crypto Mobile Banking and Virtual Banking channels. Allegedly, the Virtual Banking channel would help the clients sell and convert crypto to pesos. On the other hand, the Mobile Banking channel would let the customers send the pesos to the bank, pending withdrawal. Together, the two channels would also let the clients use pesos to buy crypto via their bank accounts.
A gradual shift toward crypto
The report went on to disclose that Banco de Bogotá would be responsible for managing the deposits and withdrawals of the crypto assets that will be developed in the pilot program. Reportedly, this move aligns with the framework that the country’s regulators came up with to ensure the safety and transparency of operations.
The bank inspiration comes from participating in the transformation of Colombia. As such, the bank takes pride in being amongst the entities that are working on developing a regulatory framework that would enable the compliant exchange of cryptocurrencies in the country.
This news comes after the FSC approved nine crypto networks to work with national banks mid-last month. Among the approved networks were Panda Exchange and Movii Exchange. The regulator also allowed companies in the country to purchase crypto, including BTC, provided they comply with local regulations.
