AFP Protección, a major Colombian pension manager, is planning to let some clients invest a small slice of their retirement portfolio in Bitcoin (BTC).
According to a report by Valora Analitik, Protección, which is currently the country’s second-largest private pension and severance fund manager, said the Bitcoin option will not be open to everyone. Clients would need to go through a one-on-one advisory check, and only those who fit the risk requirements could use it.
Protección is preparing to launch a fund with Bitcoin exposure from Colombia. The product will not be focused on short-term speculation, but on expanding diversification options with comprehensive risk management and a long-term vision, explained its president, Juan David Correa.
Valora Analitik
This is another sign that Bitcoin is moving into mainstream finance in Colombia, though it does not mean Colombia’s pension system is going full crypto, and Protección said most pension money will stay in normal assets like bonds and stocks. The Bitcoin exposure is just an extra, optional product for a limited group.
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Protección manages more than 220 trillion Colombian pesos in assets, about US$55 billion (AU$84.15 billion), for over 8.5 million clients. Another pension manager, Skandia, started offering Bitcoin exposure in one portfolio in September last year.
The announcement also comes as Colombia increases oversight of crypto. The tax authority DIAN has introduced mandatory reporting rules for crypto service providers, requiring them to submit user and transaction data.
Other countries in the region have adopted cryptocurrencies one way or another. Colombia’s neighbour, Venezuela, has seen a prominent rise in stablecoin usage, mostly due to local fiat inflation and economic uncertainty.
Brazil saw a spike in crypto adoption, with total transaction volume up 43% from a year earlier, according to a Mercado Bitcoin report.
Related: UBS CEO: Blockchain’s Takeover of Traditional Banking Is Inevitable
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