Blockchain and Cryptocurrencies Growing in Colombia

Blockchain, Innovation, Interviews | October 27, 2018 By:

Colombian presidential candidate Ivan Duque achieved almost 54 percent of the vote and became the new leader of Colombia after defeating Gustavo Petro in the second round. The new President-elect has assured that he will seek to give the state more transparency “with blockchain technology.”

Regarding those remarks, Mauricio Tovar, co-founder of the Blockchain Foundation in Colombia, assured that it was “good news” that blockchain was named during the electoral period in his country. Especially in the field of public procurement and bidding, where Duque indicated that corruption was part of the state level.

Bitcoin and drug trafficking

On a sensitive issue such as drug trafficking in Colombia, Tovar said that today bitcoin may be functioning as a drug trafficking tool. “It is clear that it may be happening,” he said. “Like any technology, it can be used for “good topics and bad topics” that is why it is important – for him – that the debate focuses on the positive aspects of digital currencies, such as being able to make transactions without intermediaries.”

Cryptocurrencies as savings

In relation to cryptocurrencies, Tovar said that although Colombia does not have the inflation of Venezuela or Argentina, they are used as storage of value in the long term. “Second, it is used as a means of exchanging goods and services,” he said.

Regarding the adoption of cryptocurrencies, he stated that “it is still minimal,” but that “it is growing significantly compared to other Latin American countries.”

Blockchain in real life

The ecosystem of companies in Colombia that have adopted blockchain in their processes is in full development. Tovar, an expert in new technologies, said that there are several companies that are implementing pilot projects. Among them was AOS, a Colombian firm that is doing a pilot applying blockchain in the logistics sector.

However, the blockchain application by the banking industry drew a raised eyebrow from Tovar. “Interestingly, the same banking sector says it is developing blockchain pilots, they are the same actors that are cutting the accounts to these cryptocurrency exchange houses are developing pilots in blockchain. ”

This story was originally published in Spanish at Cripto247.