Colombian bank kicks off second phase of crypto pilot project with exchanges

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Source: A screenshot, Instagram / bancodebogota

Colombia’s oldest commercial bank, Banco de Bogot, has started the next phase of a crypto pilot project that will allow 5,000 of its customers to make and receive payments using tokens hosted on platforms of two major crypto exchanges.

As reported, the bank has partnered with trading platforms Bitso and Buda in a crypto sandbox project operated by Superintendencia Financiera (Financial Superintendence known as Superfinanciera), one of the largest financial regulators in the country.

The first part of the pilot, which began in March this year, allowed the group of clients, all over the age of 25, to make crypto deposits and withdrawals on the banks’ mobile and desktop platforms. They were allowed to exchange cryptos for Colombian fiat pesos and vice versa using interfaces linked to the Buda and Bitsos systems.

But the next phase of the trial will see what happens when participants try to spend their crypto using bank cards and app platforms.

Semana has indicated that the Buda interface will be ready this month, while the Bitso platform will be ready in October, and the new services will allow cash-out and cash-out transactions.

This will, in effect, allow users to make real-time fiat payments using their crypto holdings and receive real-time fiat payments that are presumably converted to crypto and hosted on the Bitso and Buda exchanges.

The pilot will last for an additional year, after which the Superfinanciera will evaluate the results and report to the government.

The same outlet quoted Scar Bernal, the bank’s vice president of technology, as saying that one of his big motivations was to become an active part of the country’s digital transformation.

He added,

We believe that it is valuable to participate in the construction of a possible regulatory framework that could allow operations with crypto-assets in Colombia.

BancodeBogot was established in 1870 and has some 670 branches across the country.

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Read more: – Colombias Banco de Bogot launches crypto pilot project – Colombian banks to work with exchanges on one-year crypto pilot

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