Senate in Colombia discusses Blockchain technology and cryptocurrencies

in #bitcoin6 years ago

The session brought together various actors from various State institutions. The importance of the study in greater depth on this matter was addressed, as well as the need to create regulatory frameworks that protect people but that do not compromise the growth of the ecosystem and technological developments.

Yesterday, a presentation related to the use of Blockchain technology and cryptocurrencies was held in the Colombian Senate, an issue that was promoted and directed by Senator Antonio Navarro Wolff, and was attended by representatives of the Financial Superintendence, Banco of the Republic and the National Banking Association (Asobancaria).

Senator Navarro Wolff opened the discussion by stressing the importance of talking about the topic at this level, given the rise of cryptocurrencies especially last year, when a large number of exponents began to emerge and the most important crypts increased their value . The senator also clarified that Blockchain had to be separated from cryptocurrencies, as well as the fact that the institution should make efforts to understand these issues and see what needs to be regulated.

Navarro Wolff said that this discussion was aimed at attracting attention and reporting on the subject, and that the responsible entities of the State begin to work on a reasonable regulation that protects investors but does not hinder the development of the ecosystem and technology. He highlighted the applicability that Blockchain has in the areas of copyright, land titling, and especially on the electoral system, a sector in which historically brings many costs and has seen many irregularities.

On cryptocurrencies, the senator called attention to the attendees indicating that the five main exponents together move a volume of operations that exceeds USD $ 250,000 million, being above the GDP registered by Colombia at the end of the fiscal year.

Navarro Wolff highlighted the advantages of using cryptocurrencies and the Blockchain, mentioning the low costs for transactions, the impossibility of altering the registers and the fact that they are very simple to use. On the other hand, he also pointed out that this technology requires the payment of commissions for the concept of decentralized validation, they are not assets issued by a central authority presenting high volatility, and in the case of Colombia, regulation is minimal.

The senator recommended, as a first step, to study the regulations developed by other countries and see how they can adapt to the Colombian context. He also made the statement that the Superintendence issued three circulars in this regard (2014, 2016 and 2017), which end up limiting the use of cryptocurrencies, even leading to banking entities closing accounts to users who are presumed to make commercial use of these assets , very closed approach that prevents the healthy development of this ecosystem.

He also mentioned the aspects that make Blockchain the most important element for the State (security, tradability and applicability) and made a brief tour of the initiatives with this technology that are promoted in Latin American countries, recognizing the work done by the Inti Colombia group for the development of an electoral system for the election of student representatives, despite the fact that a biometric system had yet to be incorporated to identify the voter and avoid inconveniences.

To close its participation, Navarro Wolff informed that there are institutions that already study this technology in the country with the R3 consortium, an aspect that had to be taken advantage of at an even broader level since the institution provides free advice to governments regarding the regulatory issues.

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