Central Bank of Colombia Announces First Blockchain Bond Pilot Program – Bitcoin News


The Central Bank of Colombia has announced its involvement in the first blockchain bond pilot program in the country, with the participation of the Interamerican Development Bank (IDB) and Davivienda, a private commercial bank. The proof of concept will use the Lacchain blockchain platform developed by the IDB, which will handle the operative part of the issuance.

Central Bank of Colombia Joins Blockchain Bond Pilot Program

The Central Bank of Colombia has announced its participation in the first blockchain bond program in the country. Issued by Davivienda, one of the most important commercial banks in Colombia, and with counseling from the Interamerican Development Bank (IDB), this pilot program seeks to explore the benefits of the new technology and study its application for the next bond issuances.

How To Get Free Crypto  

According to the official announcement from the Central Bank of Colombia, these benefits would include the potential reduction of operational costs, the optimization of process times, greater efficiencies in the traceability and security of operations, the elimination of information asymmetries, and better management of financial risks.

The bonds will be issued and managed using Lacchain, IDB’s blockchain platform that is designed to support this kind of application. The role of the central bank will be to run an observing node in the blockchain and support the issuance in its high-value payments system.

Colombians Reaching for Blockchain

While Colombia has not been known for its adoption of cryptocurrencies or blockchain, the country is slowly introducing its financial system to the idea of these new technologies. Earlier this year, in February, the financial watchdog of the country, the SFC, authorized the establishment of a regulatory sandbox that allowed some banks to establish alliances with exchanges to process cryptocurrency purchases in a joint effort. Davivienda, the bank involved in this blockchain bond trial, was also included in this batch of banks.

The objective of the establishment of this sandbox is to better understand how cryptocurrency systems can work in tandem with traditional banking systems to issue laws that adapt to this new paradigm. This indicates that Colombian regulators are considering cryptocurrencies as potentially influential factors in the country in the years to come. However, the retail cryptocurrency business in Colombia is small and it doesn’t reach the importance it has in other countries of the region like Venezuela or Argentina.

Coinbase Banner  

What do you think about the first blockchain-issued bond pilot program in Colombia? Tell us in the comments section below.

Tags in this story

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Go to Source
Author: Sergio Goschenko

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.