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Manager of Banco República de Colombia winks at bitcoin or is studying a CBDC?

The Manager of the Bank of the Republic of Colombia, Leonardo Villar, launched several winks to bitcoin by pointing out that the country requires a payment infrastructure that connects and includes everyone with less cost than the existing options.

During the “Comprehensive Risk Management” congress, organized by businessmen and executives from the insurance sector, Villar spoke about creating alternatives to reduce the use of cash. In this sense, he believes that the interest of the population should be directed towards “low-cost payment mechanisms that are secure enough so that they do not want to use cash.”

The manager of the financial institution seemed to be flirting with bitcoin, mostly because it is considered the safest payment method. Even above traditional systems, such as credit cards, debit cards or bank transfers.

Villar launched so many references to bitcoin that the president of the Colombian Trust Association, Germán Arce Zapata, told him: “that is called cryptocurrencies and it is as the president of El Salvador has done, who is conducting a live experiment.” It was then that the official mentioned the need to “distinguish between cryptocurrencies and the development of digital payments.”

Together Villar participated in the event “Comprehensive Risk Management” in which he answered questions from executives of the Colombian insurance sector.
Source: Screenshot / YouTube Fasecolda.

If not bitcoin, will it be a central bank digital currency?

Leonardo Villar acknowledged that “cryptocurrencies are mechanisms that have elements that could be interesting for the future.” However, it considers that, above all, it is necessary to regulate them.

Added that the use of cryptocurrencies in Colombia is relatively high, although from their perspective this could be linked to money laundering.

Cryptocurrencies are mechanisms that generate very high risks whose support is not fully known and many people use them, not for savings, but because they simply want to speculate. They are also used because, paradoxically, it is an alternative to generate transactions that do not leave a trace and that can be a terribly dangerous thing. That is why I believe that this forces us to have this type of activity highly regulated and to be very careful with the way in which they are carried out.

Leonardo Villar, manager of the Bank of the Republic of Colombia.

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

Despite this, it can be interpreted as that the main financial institution in Colombia is studying the possibility of directing its efforts towards new developments, it may be that a central bank digital currency (CBDC) is in your plans.

The foregoing gains strength if points from the speech of the senior official are analyzed, who also mentioned the challenge facing the Banco de la República to strengthen payment alternatives with “Interoperative” infrastructure.

The contribution that the Banco de la República can make in matters of low-value payment systems can be very important to guarantee total interoperability and, as far as possible, lower costs than those we are observing today. This is something that possibly works in state regulation and works on platforms generated by entities such as Banco de la República.

Leonardo Villar, manager of the Bank of the Republic of Colombia.

Villar explained that there must be interconnection and interoperability when transactions are made, as well as the ability to include everyone and integrate institutions.
Source: Screenshot / YouTube La República newspaper.

As CriptoNoticias reported last July, Colombia issued a bond on a blockchain. This with the idea is to incorporate a new technology for the processes of the Colombian stock market, promoted by the Davivienda bank and the IDB group, which includes the Inter-American Development Bank, IDB Invest and IDB Lab.

As detailed by the central bank of Colombia at the time, a pilot plan was launched in which the institution also participated as an observer node in the blockchain network. Among the potential benefits, mention is made of the possibility of reducing operating costs, optimizing process times, improving the traceability and security of securities operations and “better management of financial risks.”

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: Tammy@oicanadian.com Phone: +1 513-209-1700

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