Major Colombian banks launch cryptocurrency exchange and peso stablecoin

Bancolombia Group, Colombia’s largest bank, has entered the cryptocurrency business by launching cryptocurrency exchange Wenia. The cryptocurrency platform aims to reach 60,000 users in its first year and compete with Binance and Bitso.

Along with the cryptocurrency exchange, the Bank of Colombia also launched a peso stablecoin called COPW, pegged 1:1 to the Colombian peso.

Stablecoins serve as an onboarding solution for exchange users. In addition to the COPW stablecoin, Weina allows trading of Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Polygon (MATIC). To access Weina, traders must be Colombian nationals residing in the country.

The banking giant aims to consolidate the high usage of cryptocurrencies in Colombia by offering services to both amateur and experienced cryptocurrency traders through its cryptocurrency platform.

According to the 2023 Global Crypto Adoption Index, Colombia ranks third among Latin American countries with the highest adoption of cryptocurrency assets.

Juan Carlos Mora, president of Bancolombia Group, told Forbes that the company has been working for nearly a decade to create a cryptocurrency platform that “drives the adoption and use of digital assets and blockchain technology.”

Related: Arrested Binance executive pleads not guilty to Nigerian charges

Bancolombia Group’s official statement also warned traders about the risks associated with trading digital assets. The bank said the listed cryptocurrency assets are neither securities nor backed by the government.

“They are not protected by deposit insurance and there are associated risks such as volatility and price losses of digital assets. It is important to note that none of the entities of the Bancolombia Group have any exposure to digital assets,” Bancolombia explained.

A lawyer in a LinkedIn post said Weina is an independent entity registered outside the country in “Las Bermuda” and is subject to that country’s laws. Any disputes or claims will be heard directly against Wenia (and not Bancolombia) in the courts of Bermuda.

magazine: Meme Coin: A Betrayal of Cryptocurrency Ideals… Or its true purpose?