Banco de la República Colombia, a financial entity in the Colombian states which functions much like a central bank, has recently accepted software enterprise R3’s invitation to collaborate.
This makes the it the first Latin American central bank to enter an agreement with this company, under the terms of which it consents to evaluating and testing distributed ledger technology (DLT).
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Fintech solutions provider R3 has collaborated with more than 85 banks, trade associations, financial institutions, and technology providers worldwide in order to develop commercial apps for the financial industry within the DLT field.
R3 and its allies at the Colombian bank will advance the development of Corda, an open source distributed ledger platform for recording, synchronizing and managing financial contracts. The platform offers the benefits of blockchain technology and its design assists in answering the needs of regulated financial institutions.
Fabio M. Pinzón, Technology Director at Banco de la República Colombia, expressed that having the ability to test new blockchain technologies ensures the bank’s safety and the efficient management of its securities exchange: “The emergence of blockchain as a mechanism to have decentralised, secure and synchronised databases has promoted the emergence of platforms such as Corda from R3. It is in our interest to evaluate the benefits of this technology for the safe and efficient management of the exchange of securities in the Colombian financial system.”
David Rutter, Chief Executive of R3, has added that working side by side with financial entities such as central banks and regulatory bodies are the company’s top priority: “Recognising that our members operate in one of the most heavily regulated industries in the world, since launching R3 we have made engagement with regulators and central banks a top priority. A collaborative public-private working model is crucial to speeding up the deployment of enterprise DLT platforms such as Corda. We look forward to working together with Banco de la República Colombia.”