Financial Superintendence of Columbia joins R3’s Blockchain Network

Superintendencia Financiera de Colombia (SFC) became the most recent member of R3, the conglomerate of banking and financial entities that seek to take advantage of the benefits offered by Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology in their internal processes.

This was announced through an official statement on R3's website on November 1st. Now, the Colombian supervisory entity will have first-hand knowledge regarding the implementation of blockchain technology in the financial area together with more than 100 institutions from different parts of the world, including central banks, supervisory bodies, business associations, and companies dedicated to financial services. The development of decentralized applications with Distributed Ledger Technology (DLT) Distributed Ledger Technology (DLT) A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to A distributed ledger or distributed ledger technology (DLT) is a database that is shared and synchronized across a number of different devices in different locations. DLT networks effectively eliminate the need for a centralized authority to act as the network’s custodian. In its place is a Peer-to-Peer (P2P) network as consensus algorithms to ensure replication across nodes is undertaken.The most common kind of distributed ledger network is a blockchain network. Blockchain networks are used to Read this Term) has the potential to bring a massive change in the core financial technology.

Jorge Castaño Gutiérrez, the Colombian Financial Superintendent, commented: “This agreement with R3 contributes to the strategy we set in motion with the creation of the FinTech Group within the Superintendencia to learn the uses of this technology, which will provide efficiency and security of information to be able to accompany, support and endorse different processes within the industry.”

David Rutter, Executive Director of R3, welcoming SFC to its blockchain network, said: “Our network of regulatory and supervisory members from all over the world continues to grow at a good pace and we are pleased to welcome you to the Financial Superintendence of Colombia. Collaboration between regulators and the institutions they oversee is a critical component to ensure the future development and adoption of DLT technology.”

In August 2017, Bank of Columbia became the first financial institution in Latin America to join the R3 blockchain network. SFC is the second institution in the country to be added with R3.

Other Latin American countries are also taking great interest in the blockchain and DLT technology. At the end of September, the Superintendency of Banks and Financial Institutions of Chile joined the R3 network, following the Superintendency of Banking and Insurance of Peru a couple of days earlier.

The R3 consortium has already created a platform for the financial sector, called Corda, which runs on the DLT. The first version (1.0) was launched in the month of October and is specifically designed for the management, administration, and synchronization of blockchain agreements. It has the capability to create smart-contracts which R3 believe will bring transparency and also reduce the cost.

Moreover, R3 recently announced that along with its 22 member banks, it is going to launch a blockchain-based cross-border payment system. It is hoping to release the beta version by the end of this year which will run on Corda.