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Colombia’s oldest bank turns to cryptocurrency

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The Banco de Bogotá, the oldest bank in Colombia, is preparing to launch a first test to integrate cryptocurrencies into its services. The country appears to continue to encourage economic innovations.

When a bank adopts cryptocurrencies

Colombia is about to take another step towards cryptocurrency. Banco de Bogotá, the country’s oldest bank, announced via a local newspaper on Monday that it will participate in a cryptocurrency-based pilot project .

This project aims to promote a common test space between the digital ecosystem and the Colombian government in the field of cryptocurrencies. It will be implemented through a sandbox (mechanism used to improve the security of software and web pages) called “laArenera”.

The first trial of this project is expected to begin in March and be carried by Superintendencia Financiera de Colombia, the country’s main financial regulator. This first test will allow Banco de Bogotá to explore the business model and the risks associated with managing assets in the form of cryptocurrencies.

To do this, the financial institution will select a limited group of customers to carry out transactions with specific limits. These customers will make withdrawals and deposits from Mobile Banking and Virtual Banking, the digital channels of Banco de Bogotá.

This new initiative will allow customers to buy cryptocurrency through their bank account, but also to sell and convert them into Colombian pesos. Colombia is one of the countries with high crypto adoption with bitcoins, ethereum, and Tron thriving among youths.

Banco de Bogotá close to digital innovations

Banco de Bogota takes a keen interest in technological innovations in order to continually develop new products and services that combine reliability and practicality  according to their vice president of technology Oscar Bernal Quintero.

“One of our greatest motivations is to actively participate in the transformation of the country and we consider it useful to contribute to the construction of a possible regulation that would allow the exchange of cryptocurrencies within the Colombian regulatory framework”, did he declare.

Today, Colombia is the Latin American country with the largest number of cryptocurrency ATMs. The country appears to be open to this industry and the benefits it can offer.

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