There was a time when the cryptocurrency industry was not even able to make people come to its initial offering. The majority of the investors did not want to invest in cryptocurrencies due to their decentralized nature, let alone investments from institutional investors.
However, the cryptocurrency industry started gaining gradual growth and adoption from private investors. Although the industry gained a lot of success, yet it lacked mainstream adoption. That is when the year 2020 hit the entire world and the global economy faced a huge downfall.
The entire world went under extreme lockdowns and curfews resulting in millions losing their jobs. That is when the cryptocurrency industry played a huge role in keeping the affected people safe and provided with income.
This is when the year 2020 turned out to be the best for the entire cryptocurrency industry. It was the same year when the cryptocurrency industry got picked up by mainstream institutions.
The same year also saw countries from around the world realize the importance of having virtual/digital assets as an alternative to fiat currencies. This is the reason why countries such as Russia, China, Venezuela, India, and many more have already started adopting CBDC technology.
When it comes to testing and launching the CBDC, Colombia has also emerged as a country that is determined to launch its own CBDC. Therefore, Colombia had announced towards the end of the year 2020 that it was working on the design and develop its own CBDC.
According to recent reports, Colombian Banks are now in the process of partnering with different cryptocurrency exchanges. They are doing this in order to streamline the process of developing central bank digital currencies and run tests on them. The Colombian Banks have also expressed their intentions of launching the pilot phase alongside other cryptocurrency exchanges.
In order to carry out its plans, the Colombian Banks have started partnering with some of the largest cryptocurrency exchanges in the country. With the partnership, the banks will be focusing on establishing the scalability and adaptability of the digital-currencies. The banks will also be working with cryptocurrency exchanges to see how the banks will be able to conduct crypto-transactions.
It has been announced by the Colombian Banks that in order to carry out the pilot for digital assets, they will first design and develop a regulatory sandbox. The regulatory sandbox is the creation of the Financial Superintendence. The Financial Superintendence is one of the top financial regulators in Colombia.
So far, some of the biggest cryptocurrency players in the country have teamed up with the Colombian Banks to proceed with the project. It has been confirmed that Banco de Bogota will be working with Bitso and Buda cryptocurrency exchanges. On the other hand, Bancolombia will be working along with Gemini, and Davivienda bank will be working with Binance and Powwi for the pilot.