Colombia confirms its interest in cryptocurrencies. Bancolombia, the country’s largest bank, has partnered with exchange Gemini to offer its customers the purchase and sale of several crypto-currencies, including Bitcoin (BTC) or Ether (ETH).
Colombia’s first bank is moving into cryptocurrencies
The news was confirmed in a statement from Gemini. The cryptocurrency exchange launched by the Winklevoss brothers is partnering with Bancolombia, Colombia’s first bank. From December 14, its customers will be able to buy cryptocurrencies directly from their bank accounts. Four assets will be available: Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).
The partnership is part of a one-year pilot programme launched and supervised by the Financial Superintendence of Colombia, the country’s financial regulator. For the time being, only a limited number of customers will be able to access these new services.
We look forward to working closely with the digital asset ecosystem in Colombia and supporting cryptocurrency-based products that allow Colombians to take control of their financial lives,” said Cynthia Del Pozo, head of strategy and development at Gemini.
In concrete terms, Bancolombia will continue to manage its clients’ fiat currency funds. However, Gemini will provide the infrastructure for the purchase and management of digital assets.
We recently partnered with @Bancolombia to provide their customers with a seamless onramp to trade $BTC, $ETH, $LTC, and $BCH through the Gemini exchange!
We’re excited to work closely with the Colombian crypto ecosystem and grow our presence in LATAM⬇️https://t.co/V1VA8lFdQJ– Gemini (@Gemini) December 6, 2021
Latin America, the cryptocurrency Eldorado
This partnership between Bancolombia and Gemini appears to be the first step in a larger development in Latin America. Indeed, Gemini operates in more than 60 countries around the world but especially in Argentina, Brazil, Chile, Panama, El Salvador, Peru and Uruguay.
Moreover, Bancolombia is not only present in Colombia, it also has clients in Panama, Guatemala and El Salvador.
Since the adoption of Bitcoin as legal tender in El Salvador on 7 September, Latin America has taken giant steps towards the adoption of cryptocurrencies. While Uruguay or Argentina were positioning themselves to be the future crypto-nations, Venezuela announced the imminent launch of a Central Bank Digital Currency (MNBC).
In reality, this is not really a surprise and simply confirms a trend that has been observed for a few years now. Indeed, a report by Chainalysis published in late 2021 already indicated that Colombia and Venezuela were in the top 10 countries with the widest acceptance of cryptocurrencies.
Similarly, a study by payment company Visa revealed that 78% of people in South America wanted to turn to cryptocurrencies as a new payment method.
