Depositors and investors of Colombia’s first commercial bank, Banco de Bogota, can soon use cryptocurrencies to deposit or withdraw.
Starting in August, the bank will allow its customers to send or withdraw money from one of Chile’s biggest crypto exchanges, Buda.com.
Buda.com Colombia country manager Alejandro Beltrán said the initiative is part of the Colombian government’s pilot testing of cryptocurrencies for banking services.
Detailed, careful
Since this is the first time both companies are teaming up into a new venture, Beltrán said they are taking the steps in detail and carefully, adding they are still in the process of defining the terms and conditions of their contract.
“Banco de Bogotá has been very detailed and careful in this process, which is understandable since it is entering a new world and they want to understand it in all its dimensions,” Beltrán said.
However, Buda.com and Banco de Bogotá’s agreement may not be the first initiative undertaken by a cryptocurrency and financial company.
Bitpoint and Panda crypto exchange have already been operating with financial tech group Movii early this month.
Crypto pilot-test
Early this year, the Financial Superintendency of Colombia, the country’s financial guard, said there were 14 applicants for test banking services for crypto exchange. However, only nine were chosen and they will be tested for a year.
Among the nine exchanges chosen by the SFC is Binance, which will operate with Colombian bank Davivienda and fintech Powwi, while Gemini plans to operate with Bancolombia.
Meanwhile, Beltrán revealed that it is not only Buda.com that will partner with Banco de Bogotá. Bitso, another crypto exchange, is also joining forces with the bank, but that their tie-up has yet to start.
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