The Colombian Stock Exchange (BVC) announced its inclusion in the Colibrí consortium. A private initiative that, according to the newspaper La República, promotes the introduction of blockchain technology in the industry.
The Colibrí consortium consists of institutions such as Bancolombia, BBVA, Santander Caceis Colombia, Deceval, Marco Contract, Porvenir and Skandia.
It is precisely the association through the Fintech framework agreement will enable BVC to leverage the Colibrí platform’s blockchain technology to improve its operational efficiency in the spot derivatives (OTC) market. A current practice that is time consuming, expensive and difficult to reconcile with the established manual process.
Regarding the milestone reached by the BVCJuan Pablo Córdoba, president of the institution, pointed out that they see these types of blockchain-based initiatives as an intermediary in the clarification and handling of operational guarantees.
“In this case in the OTC, where there is a greater complexity that makes the processes easier for our customers,” said the note in the digital newspaper.
According to La República, the agreement develops the strategy for implementing innovation initiatives of the Fintech Connection program by BVC and Sophos Solutions to accelerate digital transformation in various business areas.
“The agreement reached with BVC will allow us to show the market that blockchain technology is the future of financial infrastructure.” Juan Manuel López, executive director of the framework agreement, the other strategic partner in the agreement with the Colombian stock exchange, highlighted.
The Colombian fintech announced in October 2019 that they had successfully passed their pilot test on the Colibrí platformand became one of the first operations on blockchain in the world’s derivatives market at that time, according to its website.
According to official information, the pilot used distributed book technology (DLT) to reduce the operational risk among the market participants of derivatives.
Blockchain on the stock exchanges
The use of blockchain technology is increasingly crossing borders, including non-traditional and common sectors such as stock exchanges, which are vital to the economy of all countries.
The use of blockchain in this sector is not new even in the region. During the last Blockchain Latam Summit, for example, it was possible to get to know Chile’s experience in this industry in depth.
On this occasion, Andrés Araya from the Santiago Stock Exchange, pointed What “The stock market is a centuries-old company, but our technological change began in 2010 when we had more momentum in development. “ Allusion to the use of blockchain technology in the digitization of assets within the sector.
On a global level, traditional exchanges like Swiss SIX have been signaling since 2018 that blockchain-based exchanges will replace traditional ones in around 10 years.
However, the European company, which postponed the launch of its blockchain-based SIX Digital Exchange to the end of 2020, reported that it launched a Bitcoin ETP on its Amun platform as part of preparations for the launch of the decentralized solution. .
In addition to Switzerland, there is progress in Europe in adopting blockchain technology in Malta, Gibraltar, Estonia, and Luxembourg, not to mention that part of Southeast Asia is more advanced in this regard.