On June 6th, the senator Antonio Navarro Wolff carried out a presentation concerning the Blockchain technology and cryptocurrencies at the Colombian Senate. Representatives of the Superintendence of Finances, National Bank and National Banking Association (Asobancaria) were invited.
Wolff stressed the importance of talking about this issue at the Senate, in view of the undeniable boom that the cryptocurrencies have had especially last year, since a large number of exponents emerged and the most important cryptocurrency increased their value significantly.
In his presentation, Wolff made it clear that it is necessary to separate the concepts of Blockchain and Cryptocurrency, insisting on the fact that the Senate is called to make the necessary efforts to understand everything related to these issues and see what is necessary to regulate.
In addition, he clarified that his approach was focused on attracting attention and reporting on the issue, since, in his opinion, responsible entities of the State should begin to work on a reasonable regulation that protects investors without impeding the development of said digital ecosystem and its technology
He also highlighted the many applications that the Blockchain technology has in matters such as copyright, land titling, and especially on the electoral system, a sector that historically carries high costs and has been susceptible to innumerable irregularities.
You may like: From a wooden bank to Blockchains
In relation to cryptocurrencies, Wolff drew the attention of the attendees highlighting that its five main exponents move a volume of operations that exceed USD $ 250,000 million together, well above the GDP registered by Colombia at the end of the fiscal year.
The Senator highlighted the advantages of the use of cryptocurrencies and Blockchain, focusing on the low costs of transactions, the simplicity of their use and the impossibility of altering the records of operations. He also pointed out that said technology requires paying commissions for the decentralized validation system, since they are not assets issued by a central authority and present high volatility. In addition, in the case of Colombia, the regulation is minimal.
As a first step, Wolff recommended studying the regulations applied in other countries and how they can be applied in a Colombian context.