New York-based cryptocurrency exchange Gemini just announced its partnership with Colombia’s largest bank Bancolombia under the country’s Regulatory Sandbox.
The two parties share the same mission to offer crypto services in Colombia. The project is expected to launch next week – specifically on December 14th.
Gemini And Bancolombia Team Up
According to the announcement, Gemini has completed all the necessary steps to move into the implementation phase.
The strategic collaboration will offer people in Colombia a new option to buy their preferred digital currencies using their Bancolombia accounts.
In other words, users of Bancolombia can directly link their account with their Gemini account and use it conveniently to purchase crypto, as easily as purchasing any other product.
This partnership is of immense importance for the development of the local crypto industry as Bancolombia is the largest bank in the country, with total assets reaching $275.76 billion in 2020 and more than 16 million users in the same year.
The estimated period of the project is one year, starting on December 14, 2021. During that time, all eligible users will be able to buy Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) from Gemini using their Bancolombia account.
While the move could serve to drive millions of Colombians into the world of crypto, the service will be limited to a handful of users for now.
However, neither Gemini nor Bancolombia has official statements regarding the eligible individuals for the service.
Gemini is Going Global
As for Gemini, the partnership contributes to Gemini’s strategic plan to expand in Latin America. The major exchange has reached notable milestones since its launch, marked by multiple partnerships with tech giants and bank forces.
In May 2020, the exchange became the first US exchange to team up with the world’s leading conglomerate Samsung Electronics.
The aim is to bring the cryptocurrency into the hands of Samsung Blockchain Wallet users in the US and Canada. The integration will allow Samsung Blockchain Wallet users to connect to the Gemini mobile app to buy, sell, and trade cryptocurrencies.
By the end of April this year, Gemini and Mastercard have formed a strong partnership to introduce a cryptocurrency rewards credit card. The first one-of-kind credit card offers up to 3% bitcoin cashback to users.
Gemini was also announced as the world’s first licensed Ethereum (ETH) exchange. Gemini customers can make bulk purchases of cryptocurrencies in transactions.
Banks Are Embracing Cryptocurrency
The volatility of digital currencies, mostly of Bitcoin and Ethereum, is always the biggest concern to get banks on board.
As the value of these currencies fluctuates, many central banks have questioned the practicality and volatility of these virtual assets. At some point, it’s not exaggerating to state that central banks and crypto couldn’t exist under the same roof.
Central banks, in one way or another way, tried to hit the power of decentralized digital financial payment. The most significant act belongs to the People’s Bank of China in a clear declaration of cryptocurrency crackdown in September.
The POBC said that buying and selling virtual currencies led to the rise of money laundering and investment fraud, as well as other illegal activities.
The country has its point. But the truth is the fact that we all recognized, the powers failed to control the rapid growth of virtual currencies, and obviously, it puts them in an afraid mood of disrupting their economic order.
Unlike the strict act of China, regulators of other countries started to embrace cryptocurrencies. Instead of killing them, their choice now is to regulate them. That explains banks are recently more open to the idea of implementing Bitcoin, or Ether. The green light shines on the crypto community.
On the same day of Gemini’s announcement, Mumbai-based financial services and banking firm Kotak Bank has shaken the crypto community in India through its collaboration with WazirX. It has been 8 months since crypto-related activities froze in India. The acceptance is slowly bouncing back.
