Central Bank of Colombia joins blockchain bond program

Colombia’s apex bank will be participating in the nation’s first-ever blockchain bond program. According to an announcement by the bank, the bond will be issued by Davivienda, a leading commercial bank in the country. 

Interamerican Development Bank (IDB) is also serving as an advisor to Davivienda in this pilot program which will leverage technological advancements to determine how they can be applied to future issuances.

According to a statement released by the Central Bank of Colombia, some of the advantages of tech may include potentially lower operational cost, minimized time, better record-keeping and management, safety and security of the process, risk mitigation, and bridging of information gaps.

The issuance process will be facilitated using Lacchain, IDB’s blockchain platform, which is built specially to service such operations. 

The apex bank will “run an observe node in the blockchain and monitor the process and support the issuance in its high-value payments system.”