Colombian Bank Launches Crypto Exchange, Stablecoin

Colombian Bank, Bancolombia Group has ventured into the cryptocurrency industry with its own exchange, Weina.

The largest bank in Colombia, Bancolombia Group, has entered the cryptocurrency industry by launching its own cryptocurrency exchange, Wenia.

Colombian Bank Launches It’s Crypto Exchange

In its first year of operation, the cryptocurrency platform intends to compete with Binance and Bitso by bringing on board sixty thousand users.

The Colombian bank introduced a peso stablecoin known as COPW, fixed at a 1:1 equilibrium with the Colombian peso, in addition to launching a cryptocurrency exchange.

We will use stablecoin to streamline the onboarding process for exchange users. Besides the COPW stablecoin, Weina will also enable trading of other cryptocurrencies such as Bitcoin, Ether, USD Coin and Polygon.

To have access to Weina, traders must be Colombian nationals who currently reside in the country. The banking giant aims to boost cryptocurrency usage in Colombia by offering its platform services to both novice and experienced cryptocurrency traders.

According to the 2023 Global Crypto Adoption Index, Colombia ranks third among Latin American countries in terms of the largest adoption of crypto assets. Colombia holds the third position among Latin American countries.

During an interview with Forbes, Juan Carlos Mora, the president of Bancolombia Group stated that the company has been working for nearly a decade to develop a cryptocurrency platform that “facilitates the adoption and use of digital assets and blockchain technology.

The Colombian bank official release also emphasized that traders should be aware of the risks associated with trading digital assets. The bank stated that the listed crypto assets are neither securities nor backed by any government.

The dangers that are linked with them include price loss and volatility of the digital asset, and they are not protected by deposit insurance like traditional deposits are.

Bancolombia clarified that “no entity within the Bancolombia Group will have exposure to digital assets.” This is an important piece of information.

According to a lawyer who discussed the matter on LinkedIn, Weina is an independent entity, registered outside of the country in “Las Bermudas”. This implies that the laws of the country of its registration apply to Weina.

Should a disagreement or claim arise, Wenia will directly bring it before the courts of Bermuda, not Bancolombia.