In a move that signals the growing mainstream adoption of cryptocurrencies, Colombia’s largest bank, Bancolombia, has ventured into the crypto business by launching a dedicated crypto exchange called Wenia. The rather ambitious endeavor aims to onboard 60,000 users in its first year, positioning Wenia as a formidable competitor to established players like Binance and Bitso in the Latin American crypto market.
Thank you for reading this post, don't forget to subscribe!Alongside the launch of the crypto exchange, Bancolombia has introduced a stablecoin called “COPW,” which is pegged to the Colombian peso. The stablecoin will serve as an onboarding solution for Wenia users, facilitating seamless entry into the world of digital assets.
In addition to the COPW stablecoin, Wenia will allow traders to buy, sell, and trade some of the popular cryptocurrencies, including Bitcoin (BTC), Ether (ETH), USD Coin (USDC), and Polygon’s MATIC. However, access to the platform will be limited to Colombian nationals residing within the country’s borders.
The banking giant’s foray into the crypto realm is a strategic move to consolidate the high usage of cryptocurrency in Colombia, a country that ranks third among Latin American nations in crypto adoption, according to the 2023 Global Crypto Adoption Index from Chainalysis. By catering to both amateur and experienced crypto traders through its platform, Bancolombia aims to tap into the growing demand for digital asset services in the region.
In an interview with Forbes, Juan Carlos Mora, the president of Bancolombia, revealed that the bank has been working for nearly a decade to create the crypto platform, which “facilitates the adoption and use of digital assets and blockchain technology.”
While the launch of Wenia marks a significant milestone for Bancolombia and the Colombian crypto industry, the bank has also taken a cautious approach by emphasizing the risks associated with trading digital assets. In its official announcement, Bancolombia cautioned traders about the volatility and potential price loss of the listed crypto assets, emphasizing that they are not securities or backed by any government.
“They are not protected by deposit insurance and have associated risks such as volatility and price loss of the digital asset. It should be noted that no entity of the Bancolombia Group will be exposed to digital assets,” the bank stated.
Interestingly, a lawyer on LinkedIn revealed that Wenia is an independent entity registered outside Colombia, specifically in Bermuda, and is subject to the legislation of that country. This means that any disputes or claims will be directly with Wenia (not Bancolombia) before the courts of Bermuda.
