The Colombian banking sector maintains that the cryptocurrency sector can strengthen the financial system of that country.

In the framework of the digital forum entitled “Panorama for the regulation of crypto assets in Colombia”, the directive of the Banking Association of the Latin American country said that the cryptocurrency sector can strengthen the financial system of the country; as long as they are under a regulatory model that allows them to have control over them.

The event mainly focused on a debate on the regulation of crypto-assets and the projects for the use of blockchain that the Colombian government is advancing, after the Ministry of Finance and Public Credit approved the Sandbox decree on September 14, which aims to evaluate the operating parameters of cryptocurrency exchanges, in addition to monitoring their activity within this crypto-environment.

The digital debate focused on two panels: a first panel, where vertical discussions on cryptocurrencies were discussed, and another on the blockchain. The aforementioned event was organized by Congressman Mauricio Toro, together with the organizations Colombia Fintech, Fundación Blockchain Colombia, Alianza Blockchain Iberoamericana, also counting on the presence of the presidential advisor Jehudi Castro.

Regularization standards

During the digital event, the vice president of Asobancaria, José Manuel Gómez, reiterated that banks are open to the entry of new competitors, such as cryptocurrency companies, which could serve as an addition, and also offer new services and will also serve to strengthen the system. “But this entry must be regulated,” said the executive.

For its part; during the discussion, the president of the Colombian Banking and Financial Entities Association (Asobancaria), Santiago Castro, expressed that, there is currently an open interest to participate in the world of bitcoin and cryptocurrencies in the financial sector of the country.

He also stated that “-despite good disposition, banking entities operate in a highly regulated sector. For this reason, they must comply, first of all, with the existing norms and laws “(…)” However, now we are waiting with the approval of the Regulatory Sandbox, “it’s what he said in about the initiative recently approved by the government of that country for the regulation of the exchange of crypto assets.

On this subject, the vice president of Asobancaria said they are waiting for the instructions of the monetary and supervisory authorities of the country. As they continued conducting tests in the controlled space of the Sandbox and recalled that, so far, the Crypto assets are not recognized by the Bank of the Republic of Colombia. Hence, they cannot be admitted as currencies.

 The Colombian Government and its actual posture about crypto assets

The presidential advisor, Jehudi Castro, presented in his participation, the government strategy concerning blockchain and crypto assets, where he highlighted the support of the New Granada government since 2018 to the various projects and applications of the blockchain for official use. Highlighting that the national executive is paying special attention to public blockchains that handle crypto assets, with special emphasis on Ethereum.

By: Jenson Nuñez.