Colombia: Smart Contracts Definition and Legality

Colombia does not currently have rules that establish precisely or regulate the blockchain. The principle of technological neutrality, enshrined in Law 1341 of 2009 stipulates that any type of technology can be used, for any legitimate purpose, as long as there is no rule that regulates the use of that technology. You do not need to wait for a regulation to use it and you will have to submit to a rule or use only if it comes into existence, but you need to refer particularly to the use of the blockchain to develop smart contracts. The risk of committing a crime in the country is not associated with the use of the blockchain, but with the nature of the transactions that they want to implement with technology. “If you want to capture money from the public to make an intelligent contract, that is something else, because the capture as an activity in Colombia, is regulated. I put that example, because that’s where the doubts about this type of technologies are generated. But making smart contracts to manage the supply chain of a company does not have any problem because it has nothing to do with attracting the public, “adds the lawyer Andrés Umaña, who directs the legal affairs of Microsoft in Colombia.

The trust generated by this type of agreement is due to a contractual management, which through mathematical algorithms and encryption allows to guarantee the integrity of the information that is in that database and that allows the contracts that are in that platform to be execute automatically with the fulfillment of some conditions that are in the algorithms that are used to create the contract.

Microsoft’s legal affairs leader points out that in the country there are two stages to this trend, the first is the implementation that is being experienced, with ventures from various sectors that are executing smart contracts. The second is the overcrowding, which will take more time, because companies can take an approximate time between two or three years to understand technology, internal processes and adapt their technological tools. Read more here.


Previous Section Next Section

Have a comment, edit, or item to add? Share your thoughts by commenting below!

comments powered by Disqus