Colombia’s Banco de Bogotá to take next step in crypto-pilot with focus on spending

Colombia’s oldest bank, Banco de Bogotá, has kicked off the next stage of its crypto-pilot. As per reports, this stage will allow 5,000 of its clients to use crypto listed on Bitso and Buda cryptocurrency exchanges. The bank had previously partnered with two major exchanges as part of its crypto-sandbox project operated by one of the nation’s biggest financial regulators, Superintendencia Financiera [Financial Superintendence or Superfinanciera].

The country piloted the first part of its crypto-project back in March. This allowed customers above 25 years of age to trade crypto for Colombian pesos and vice versa through interfaces linked to the exchanges. While the first phase allowed deposits and withdrawals of crypto, the second step will focus on the spending of these cryptos using bank cards and app platforms.

The Buda interface will reportedly be functional sometime in September, while Bitso’s will follow in October. Interestingly, these services will allow “cash-in and cash-out” transactions.

As per reports,

“Participants will be able to carry out ‘cash-in’ or ‘cash-out’ operations in the deposit product in the name of the cryptoactive platform for a maximum accumulated monthly amount of $ 49.9 millions per month.”

It’s worth noting, however, that the two exchanges are currently in the stage of structuring the operation model with each platform.

According to the Vice President of Technology at Banco de Bogotá Óscar Bernal,

“We consider it valuable to participate in the construction of the possible regulation that would enable operations with crypto assets in the Colombian regulatory framework.”

The pilot is scheduled to last for a year. Following the same, regulators will assess the results of the pilots to report to the government.