The Central Bank of Colombia is approaching a new era in the blockchain industry. More specifically, the Central Bank of Colombia announced that intends to release the first ever blockchain bond pilot program. This is done with the assistance of the Interamerican Development Bank (IDB) and a private commercial bank, Davivienda. Moreover, the proof concept that is in charge for the operative part of the allocation, will execute the procedure via the Lacchain blockchain platform. Which by the way is currently in development by the IDB itself.
The goal of this pilot program is to investigate any benefits that the new crypto-technology might have for Colombia. In addition to learning how to apply it for the next bond assignment. In the official statement from the Central Bank of Columbia, there are several benefits that are of great importance that the new program will cover. This includes lowering the operational cost fees, improving the optimization timeframe, better efficiency in both tracking and security. In addition, eliminating asymmetric information and improving the overall financial risk management. Moreover, the bonds will operate thanks to Lacchain, IDB’s very own blockchain platform. Consequently, the Central Bank will adopt the role of an observer, in addition to providing any technical or logistical support during the insurance process.
This proposal by Colombia’s Central Bank comes after SFC’s decision in February. Back then, it to allowed for the creation of a regulatory sandbox. Eventually this enabled a great deal of banks to form an alliance. Thus eventually start crypto-purchasing together. It is worth to mention that the SFC is the official financial regulator in Columbia.
Furthermore, the main objective with the creation of the regulatory sandbox is learn how crypto and blockchain systems operate when paired with the fiat banking systems. More specifically, how would they fair working together in creating and passing laws that concern the subject in question.
Regardless of the fact that the cryptocurrency situation is not as potent as in Venezuela or Argentina. Columbia is still pushing for crypto-regulations, and its heading towards the future. What makes the situation positive for Colombians, is that the majority of Colombians regulator consider crypto as the future of the financial sector. As such, it is no wonder that we are already seeing Colombian regulators pushing for Columbia’s first blockchain bond pilot program.
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