Colombia is now ready for its first-ever blockchain bond pilot program, which is spearheaded by the country’s central bank.
Davivienda Bank, one of the biggest commercial banks in Columbia, will participate in the government’s pilot program. Interamerican Development Bank will also join and act as a counsel for the project.
The pilot program’s proof-of-concept will use the blockchain platform created by IDB called “Lacchain.”
Exploring uncharted opportunities
One of the government’s main goals in the project is to explore the benefits and limitations of blockchain technology in the economy and in bond issuances.
One of the anticipated benefits of blockchain technology includes reduction of operational cost, more secured operations, and improved management of risks. The government also hopes to see advantages such as improvement of processing time, improved traceability, and reduction of information asymmetries.
One of the most important roles of IDB in the project is to make sure that its Lacchain platform can run smoothly and deliver its expected performance. The Central Bank of Colombia, on the other hand, will handle the management of the node in the blockchain.
Slowly but surely
Colombia is not as aggressive as other countries when it comes to blockchain and cryptocurrency adoption. But the government has been making careful steps on gradually opening the country’s system to blockchain technology to tap its massive benefits.
Another initiative of the government is the authorization of banks to collaborate with exchanges to process cryptocurrency purchases.
The country’s crypto steps may not be as big compared to other countries, but it is slowly gearing toward a nationwide adoption of blockchain technology.
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