Superintendencia Financiera de Colombia (SFC) became the most recent member of R3, the conglomerate of banking and financial entities that seek to take advantage of the benefits offered by blockchain technology in their internal processes.
This was announced through an official statement on R3’s website on November 1st. Now, the Colombian supervisory entity will have first-hand knowledge regarding the implementation of blockchain technology in the financial area together with more than 100 institutions from different parts of the world, including central banks, supervisory bodies, business associations, and companies dedicated to financial services. The development of decentralized applications with Distributed Ledger Technology (DLT) has the potential to bring a massive change in the core financial technology.
Jorge Castaño Gutiérrez, the Colombian Financial Superintendent, commented: “This agreement with R3 contributes to the strategy we set in motion with the creation of the FinTech Group within the Superintendencia to learn the uses of this technology, which will provide efficiency and security of information to be able to accompany, support and endorse different processes within the industry.”
David Rutter, Executive Director of R3, welcoming SFC to its blockchain network, said: “Our network of regulatory and supervisory members from all over the world continues to grow at a good pace and we are pleased to welcome you to the Financial Superintendence of Colombia. Collaboration between regulators and the institutions they oversee is a critical component to ensure the future development and adoption of DLT technology.”
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In August 2017, Bank of Columbia became the first financial institution in Latin America to join the R3 blockchain network. SFC is the second institution in the country to be added with R3.
Other Latin American countries are also taking great interest in the blockchain and DLT technology. At the end of September, the Superintendency of Banks and Financial Institutions of Chile joined the R3 network, following the Superintendency of Banking and Insurance of Peru a couple of days earlier.
The R3 consortium has already created a platform for the financial sector, called Corda, which runs on the DLT. The first version (1.0) was launched in the month of October and is specifically designed for the management, administration, and synchronization of blockchain agreements. It has the capability to create smart-contracts which R3 believe will bring transparency and also reduce the cost.
Moreover, R3 recently announced that along with its 22 member banks, it is going to launch a blockchain-based cross-border payment system. It is hoping to release the beta version by the end of this year which will run on Corda.