Gemini cryptocurrency exchange has entered into a partnership with the largest bank in Colombia, Bancolombia. Its customers will get “seamless and secure” access to Bitcoin (BTC); Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) through the company’s platform.
Thus, the initiative is part of a pilot program overseen by Colombia’s financial regulator, the Superintendencia Financiera de Colombia (SFC). In March, Banco de Bogota joined the experiment; which is assessing the business model and risks associated with the processing of digital assets.
“Our participation in the financial management sandbox complements the initiatives we are developing in the process of digital transformation. Where we are constantly exploring technological innovations, striving to implement new products and services in a flexible, secure, and reliable environment”. Said Oscar Bernal Quintero, Vice President of Technology at Banco de Bogota.
The strategic expansion of Gemini’s presence in Latin America
On December 14, the first group of Bancolombia clients will get access to cryptocurrency trading, who exactly is among them is unknown. The parties also did not specify whether users will be able to withdraw funds.
“The partnership also serves as an important step toward the strategic expansion of Gemini’s presence in Latin America. We look forward to working closely with the Colombian crypto ecosystem and to supporting crypto products that empower Colombians to take control of their financial lives”. Said principal, strategy & corporate development at Gemini, Cynthia Del Pozo Garcia.
Moreover, according to its 2020 report, Bancolombia is a commercial bank owned by Grupo Bancolombia. Which has operations in Colombia, Panama, Guatemala, and El Salvador and serves 17.8 million customers.
Developing blockchain and cryptocurrency payment systems
In January 2021, the SFC approved nine cryptocurrency exchanges that will participate in the pilot project. In addition to Gemini, they included Binance, Bitso, Panda and others.
Later, Colombia’s Ministry of Information Technology and Communications has released a document urging government departments to develop blockchain and cryptocurrency payment systems. The document proposed ten solutions for implementation, including cryptocurrency payments, using blockchain for land registration, voting, and so on.
So, the Colombian banks decided to form an alliance with the largest cryptocurrency exchanges in the country. In order to start joint work over the pilot project on transactions with crypto assets.