Villar highlighted that there is a consensus to encourage a new payment infrastructure. The Central Bank is looking for alternatives to reduce the use of cash.

The Bank of the Republic of Colombia Manager, Leonardo Villar, revealed various winks to bitcoin. He explained that the country needs a payment system to link and include every user with less cost than the current options.

During the “Comprehensive Risk Management” congress, created by chairmen and executives from the insurance sector, Villar opened a conversation about creating alternatives to reduce the use of cash.

In this sense, the manager believes that the interest of the population should go towards low-cost payment that is secure enough so that these users do not want to use cash.

The manager of the financial institution seemed to be friendly with bitcoin because it is the safest payment method. He had shown sympathy for the currency, even above traditional systems, such as credit cards, debit cards, or bank transfers.

Villar unveiled so many references to bitcoin that the president of the Association of Fiduciaries of Colombia, Germán Arce Zapata, advised him that cryptocurrencies would be a live experiment conducted by the president of El Salvador.

The official mentioned, back then, the need to distinguish between cryptocurrencies and the creation and further development of digital payments.

A digital Currency from a Central Bank

Leonardo Villar recognized that cryptocurrencies are structures with features that could be interesting for the future. However, he considers that, above all, it is necessary to regulate these currencies.

The manager had made efforts to distinguish cryptocurrencies from what he calls instant digital payment systems. Regarding this situation, the manager said there is absolute consensus on the need to promote cryptocurrencies in the country, although it was not entirely clear about the subject.

Despite this situation, the first financial institution in Colombia is currently studying the possibility of leading its efforts towards new developments. Among these projects, there is a central bank digital currency (CBDC).

The situation might gain strength if it parts from the speech of the senior officers that also mentioned the challenge facing the Banco de la República to strengthen payment alternatives.

Last July, Colombia managed a bond on a blockchain. This bond happened with the idea to incorporate new technology for the Colombian stock market.

This initiative got promoted by the Davivienda bank and the IDB group, including the Inter-American Development Bank, IDB Invest, and IDB Lab.

As detailed by the central bank of Colombia, a pilot plan is active, and the institution also took part as an observer node in the blockchain network.

Among the potential benefits, there is a mention of the possibility of reducing operating costs, optimizing process times, improving traceability and security of securities operations.

By: Jenson Nuñez


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