Colombia’s oldest commercial banking institution, Banco de Bogotá, is said to be exploring cryptocurrency-related services.
Banco de Bogotá announced on Monday that it will be participating in a pilot project run by the country’s CFO Superintendencia Financiera de Colombia, according to the local news agency Portafolio. The project will operate in a sandy regulatory environment called La Arenera, which was approved by the Ministry of Finance and Public Credit in September 2020.
Banco de Bogotá explores the business model and potential risks associated with cryptocurrency management by allowing a select group of clients to buy and sell cryptocurrencies at the bank in the national official currency, the peso.
Oscar Bernal Quintero, VP Technology Development at Banco de Bogotá, said:
“One of our main motivations is to actively participate in the transformation of the country, and we find it useful to participate in creating potential regulation that will allow cryptocurrency exchange within the framework of Colombian rules.”
The Colombian government created La Arenera to enable local companies to test cryptographic transactions. According to an official statement from the Analysis and Financial Information Department, Sandbox was launched in March 2021.
The crypto industry in Colombia is actively developing. As of October 2020, the country had the largest number of Bitcoin ATMs in Latin America.