Banco de la República Colombia joins R3 to foster financial innovation

August 29, 2017 (New York/London/Singapore/Bogota) – Banco de la República Colombia has formalised an agreement with enterprise software firm R3, which will allow it to experiment with and test the latest advances in distributed ledger technology (“DLT”).

Banco de la República Colombia, which is an entity of the Colombian State that performs the functions of central bank, with administrative, patrimonial and technical autonomy, became the first Latin American central bank to accept R3’s invitation to evaluate the benefits of this technology.

In addition to the Bank of the Republic of Colombia, R3 already works with a number of central banks and regulators around the world.

These institutions collaborate with over 85 banks, financial institutions, trade associations, professional services firms and technology companies to develop commercial applications for the financial services industry that leverage the appropriate elements of DLT.

Members work closely with R3 to continue the development of Corda™, an open source distributed ledger platform for recording, managing and synchronising financial agreements. Corda is heavily inspired by and captures the benefits of blockchain systems, but with design choices that make it able to meet the needs of regulated financial institutions.

Fabio M. Pinzón, Technology Director at Banco de la República Colombia, commented: “The emergence of blockchain as a mechanism to have decentralised, secure and synchronised databases has promoted the emergence of platforms such as Corda from R3. It is in our interest to evaluate the benefits of this technology for the safe and efficient management of the exchange of securities in the Colombian financial system”.

David E. Rutter, CEO of R3, comments: “Recognising that our members operate in one of the most heavily regulated industries in the world, since launching R3 we have made engagement with regulators and central banks a top priority. A collaborative public-private working model is crucial to speeding up the deployment of enterprise DLT platforms such as Corda. We look forward to working together with Banco de la República Colombia.”

 About R3

R3 is an enterprise software firm working with over 85 banks, financial institutions, regulators, trade associations, professional services firms and technology companies to develop Corda, its distributed ledger platform designed specifically for financial services. R3’s global team of over 110 professionals in nine countries is supported by over 2,000 technology, financial, and legal experts drawn from its global member base. R3 recently announced the successful completion of the first 2 of 3 tranches in a Series A fundraise valued at USD 107 million.

Corda is the outcome of over two years of intense research and development by R3 and its members and meets the highest standards of the banking industry, yet is applicable to any commercial scenario. With Corda, participants can transact without the need for central authorities, creating a world of frictionless commerce.

About Banco de la República Colombia

Banco de la República Colombia, an entity of the Colombian State, with administrative, patrimonial and technical autonomy, that performs the functions of central bank. According to the Constitution, the main objective of the monetary policy is to preserve the purchasing power of the currency, in coordination with a general economic policy, to achieve a long-term GDP growth trend.  In carrying out this function, it adopts the necessary policy measures to regulate the liquidity of the economy and to facilitate the normal functioning of the payment system, ensuring the stability of the currency’s value.

The special functions assigned to the Bank include regulating currency, international exchange and credit, issuing Colombian legal currency, administering international reserves, being a lender and banker of credit institutions and serving as a fiscal agent of the Government. As part of its functions, the Bank also contributes to the generation of knowledge and cultural activity in the country. 

Press contact:

R3: 

Nick Warren/Nick Murray-Leslie
Chatsworth Communications
+44 (0)207 440 9780
contact@chatsworthcommunications.com

Charley Cooper
R3
+1 929 329 1550
charley@r3.com

Banco de la República Colombia:

Fabio Mauricio Pinzon Gonzalez
General Office of Technology Management
Banco de la República de Colombia
+ (571) 343 0547
fpinzogo@banrep.gov.co