Banco de la Republica is working with IDB Group and Banco Davivienda on the project.
The price on the $500 million bond has fallen by almost three points.
“Cash is king in times of distress, not bitcoin,” said one market watcher.
Last week, Frenching bank Societe Generale revealed that it has issued a security token-like bond on ethereum. But rather than using a private iteration, SocGen used the public blockchain.