Banco de Bogotá, Colombia’s oldest bank, has begun the next step of its crypto-pilot program. According to estimates, this step will enable 5,000 of its consumers to use cryptocurrency listed on Bitso and Buda markets.
Previously, the bank collaborated with two major exchanges as part of a crypto-sandbox project run by one of the country’s largest financial regulators, Superintendencia Financiera [Financial Superintendence or Superfinanciera].
In March, the country piloted the first phase of its crypto-project. This permitted clients over the age of 25 to trade cryptocurrency for Colombian pesos and vice versa via exchange-connected interfaces. While the first phase allowed for cryptocurrency deposits and withdrawals, the second phase will focus on cryptocurrency spending via bank cards and app platforms.
Buda’s interface is expected to be operational in September, followed by Bitso’s in October. Notably, these services will support both “cash-in” and “cash-out” transactions. According to reports,
“Participants will be able to carry out ‘cash-in’ or ‘cash-out’ operations in the deposit product in the name of the cryptoactive platform for a maximum accumulated monthly amount of $ 49.9 millions per month.”
It’s worth noting, however, that the two exchanges are now in the process of establishing their operation models with respect to their respective platforms.
According to Carlos Bernal, Vice President of Technology of Banco de Bogotá, “We believe it is beneficial to contribute in the development of a possible regulation that would allow for the operation of crypto assets within the Colombian regulatory framework.”
The pilot will run for one year. Similarly, regulators will evaluate the results of the pilots and report them to the government.
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