Bancolombia, Colombia-based bank, planning to give access to its clients to do Bitcoin buy, sell and trade with their funds.
Because of the increasing demand for crypto-related products, not only new companies are entering this crypto industry but also financial institutions are getting in.
In the lastest, Colombian biggest Bank, Bancolombia revealed that they established a partnership with the Gemini crypto exchange. Under the partnership with Gemini, Bank will offer frictionless Bitcoin trading services for its clients.
However, Bank revealed its plan for its new crypto services but didn’t yet explain whether they will give the ability to the users to deposit and withdraw funds to/from third-party platforms or wallets, or not
Reportedly, this initiative of the bank is a part of the government-sponsored pilot program. Under this proposed idea, the Bank will launch its service of Bitcoin trading by 14 December.
Cynthia del Pozo García, principal of strategy and corporate development at Gemini crypto exchange, said that the partnership of the Gemini crypto exchange with Bank will help Gemini to expand its potential and presence in Latin America. Further continues:
“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.”
The country’s government launched this pilot program to make the availability of crypto assets more easily to use in daily life. Currently, this initiative of the Colombian government is under compliance with the regulatory body Superintendencia Financiera de Colombia (SFC).
Banks sees competition because of the crypto industry
At present, most people are moving toward a new investment asset instead of getting a small % with Fix deposit schemes (FD) in Bank. That is why Banks are facing a lack of funding.
Because of this competition, most of the banks are sceptical about their future with the traditional financial ecosystem. That way they are also trying to go with the crypto-related services but the rules and regulations of the government authorities over banks are retarding to go with the crypto trend. But surely in the future, this situation will change just like El Salvador.