Central Bank of Colombia to launch blockchain bond

Tuesday 27 July 2021 11:34 CET | News

The Central Bank of Colombia (Banco de la República), IDB Group, and Banco Davivienda have launched the pilot of Colombia’s first blockchain bond.

According to an official statement by Banco de la República, the bond will be issued, placed, traded, and settled on blockchain technology through the use of smart contracts for the Colombian securities market. 

IDB Group is composed of the Inter-American Development Bank, the Inter-American Investment Corporation and the Multilateral Investment Fund. The pilot program seeks to verify the benefits of this new technology in the life cycle of a security, from issuance to maturity, and is expected to last six months. 

Banco Davivienda, a Colombian bank based in Bogotá, will issue the bond and IDB Invest will underwrite the entire issue. The statement added that the operation will be recorded in LACChain, a platform launched by BID Lab. The money under the pilot program will be processed by the payment system of Banco de la República, which will act as an observer node in the blockchain network. 

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Keywords: central bank, partnership, cryptocurrency, blockchain
Categories: Banking & Fintech
Countries: Colombia
This article is part of category

Banking & Fintech