Blockchain, Cryptocurrency

Colombia decided to join the Crypto Bandwagon

After a presidential advisor stated that a top financial regulator might actively seek the aid of the nation’s financial sector to pilot crypto-powered business to allow Colombian banks to authorized to test crypto transactions in a new regulatory sandbox.


Source Image: We Art Columbia – Ludwwin Espitia

In a tweet, presidential economic and tech adviser Víctor Muñoz wrote that the Superintendencia Financiera (Superfinanciera), a Colombian government agency that oversees financial regulation and markets, will “issue a call for the financial system to test fiat in and fiat out transactions using cryptoassets” using a new regulatory sandbox.

Aspects of the sandbox were unveiled earlier this week in a presidential decree.

Muñoz reckoned that the regulator wanted to gather “evidence for an intelligent regulatory framework, based on experience, data and knowledge.

Nevertheless, some are calling for crypto enthusiasts in the nation to curb their enthusiasm at the news. Media outlet Criptonoticias noted that the decree makes no mention whatsoever of cryptoassets in its 12 pages.

The media outlet also noted that many crypto exchanges had met the sandbox developments with some degree of scepticism.

The newspaper quoted Bitcoin Colombia chief Carlos Mesa, as stating,

“We hope this call will come very soon and that it will welcome companies that are already established in this sector.”

Though others took a more optimistic tone, with Mauricio Tovar, the co-director of blockchain academic research group InTIColombiatweeting,

“This is important news. The financial sector will be able to experiment with crypto using the Superfinanciera’s sandbox.”

Meantime, as announced this past summer, Colombian regulators were urged to start drawing up the country’s crypto legislation again from the beginning. A consultancy group including Columbian crypto and blockchain industry chiefs told Bogotá to abandon earlier plans for regulation that were formulated back in 2018. The group stated that the methods were already outdated, and new debates needed to be held.

In August, the Colombian Ministry of Technology has spoken out in favour of blockchain and crypto innovation for the public sector. In an official release, the ministry claimed the country was “lagging behind” its international rivals when it came to adopting blockchain technology. The ministry suggested adopting blockchain-powered health record management platforms, crypto pay infrastructure, and blockchain-powered voting systems.

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