Central Bank of Colombia Announces Participation in First Blockchain Bond Pilot Program

​The Central Bank of Colombia has announced that it would participate in the launch of the first pilot of a blockchain bond in Colombia, acting as an observer node in the blockchain network.

According to the official press release, the first pilot was launched by the Interamerican Development Bank (IDB) and a private commercial bank Davivienda. And the blockchain bond was issued, placed, negotiated and settled in blockchain technology through the use of smart contracts for the Colombian stock market.

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This pilot operation will be the first step towards the implementation of blockchain technology in the placement, negotiation and fulfillment of operations with instruments in the capital market, where Davivienda will issue the bond and IDB will subscribe the entire issue. The extreme money of the operations will flow in the high-value payment system of the Central Bank of Colombia.  

The Central Bank of Colombia participates in the technological experiment, so as to understand the process of issuing and trading securities in a decentralized way in blockchain technology in the primary and secondary market, as well as understanding the operational challenges of the project and the regulatory needs.

This innovative pilot seeks to verify the benefits of this new technology in the life cycle of a security, from issuance to expiration, which contributes to a more efficient and integrated stock market without detriment to the protection of investors.