Gemini and Bancolombia launch crypto pilot this month

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Some Bancolombia customers will soon be able to buy cryptocurrencies more easily, thanks to a pilot project launched next week that will allow Colombian bank users to link their accounts to the New York-based Gemini Exchange.

The project consists of connecting selected Bancolombia accounts to Gemini to facilitate collection and withdrawal operations. This will provide an entry and exit ramp for bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) trading.

“Our goal with this partnership is to ensure that we provide users with transparent and secure access to crypto,” Gemini Director for Strategy and Business Development Cynthia Del Pozo García told The Block in an interview.

The one-year pilot is one of many projects that the Colombian financial regulator, Superintendencia Financiera de Colombia (SFC), has approved for its supervised “laArenera” sandbox. The goal is for Bancolombia to test cashout and withdrawal operations with a crypto exchange.

Gemini will launch a four-phase deployment of the pilot on December 14, Del Pozo García said.

The first step is to invite Bancolombia employees to participate in sandbox operations, then add pre-selected clients to join until you reach an approved cap of 5,000 monthly active users. The program does not involve any deposit or withdrawal fees, a Gemini spokesperson said.

Selected customers will receive an email from Bancolombia indicating that they are invited to participate in the sandbox program, which includes a registration link that takes them to the Gemini website. Once clients are officially onboarded, they will be able to link their bank accounts to the Gemini platform to deposit Colombian pesos, Del Pozo García explained. She clarified that Bancolombia does not intervene in the process of buying and selling crypto, but rather acts as the channel that facilitates transactions by inviting customers to participate.

Bancolombia said in a press release that it will offset carbon emissions for bitcoin operations completed during the program. He calculates that figure will rise to 7,000 tonnes, which he describes as the equivalent of using 1,500 passenger vehicles in a year. The bank said it has already considered transactions using the other cryptocurrencies in its carbon neutrality program.

Gemini believes Latin America is one of the most promising international markets for crypto adoption and intends to expand in the region, Del Pozo García said. He sees the need for remittances and currency devaluation as the main drivers.

“We see this partnership to mark the start of expansion in Latin America for Gemini,” said Del Pozo García, noting that the company will be looking at several countries in the region. “We see this as a start for us. “

© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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