Renowned Colombian financial institution, Bancolombia, has made a grand entrance into the cryptocurrency business with the the unveiling of a new cryptocurrency exchange called Wenia. The aim is to attract 60,000 users within its first operational year and establish itself as a viable competitor for global crypto firms such as Binance and Bitso.
In addition, Bancolombia has also rolled out a stablecoin known as “COPW”, which is backed by the value of the Colombian peso. This will facilitate smoother onboarding for users of the exchange platform. Apart from COPW, Wenia will also support the trading of leading cryptocurrencies like Bitcoin, Ether, USD Coin and Polygon’s MATIC, with the caveat that traders must be Colombian nationals living within the country.
Bancolombia’s goal is to foster the already considerable use of cryptocurrency within Colombia by providing a platform that caters to both newcomers and seasoned crypto traders. Data from Chainalysis’ 2023 Global Crypto Adoption Index reveals that Colombia comes third in cryptocurrency adoption among Latin American nations.
In a Forbes interview, Bancolombia’s president, Juan Carlos Mora, revealed that close to a decade of planning and research had transpired before the launch of the crypto platform. He shared that they envision Wenia facilitating the adoption and application of digital assets and blockchain technology.
However, Bancolombia was also quick to caution potential crypto traders about the inherent risks associated with digital assets. The bank clarified that the crypto assets listed are neither securities nor government-backed, and are certainly not covered by deposit insurance. Echoing similar sentiments, a lawyer noted via a LinkedIn post that while Bancolombia powers Wenia, it exists as an independent entity registered in Bermuda and thus falls under its legal jurisdiction. This implies that any trading disputes or claims lodged by users will be settled through the courts of Bermuda, and Wenia will be directly responsible, not Bancolombia.