A pilot program that will include the creation of a cryptocurrency wallet is being offered by a German association of savings banks. With more than 50,000,000 customers worldwide, the association would take action amid rising cryptocurrency interest. But, this plan is still under review and there has yet to be an official decision.
German Savings Banks Could Get into Crypto
The largest association of banks in Germany is considering offering cryptocurrency-related services for their more than 50 million customers, according to a report from the German magazine Capital. Banks could use this opportunity to capitalise on the current high interest in cryptocurrency in Germany. In a time when inflation worries and negative interest rates have forced citizens to look at other investment options, banks may be looking for ways to maximize their profits.
The bank group is well-known for its conservative policies. Their customers are able to keep their cash, and they don’t risk their capital by making other investments.
The German Savings Banks Association representative stated the following:
Crypto assets are attracting a lot of interest.
Although the pilot proposal is being reviewed, it must be approved by the committee. The committee may offer a functioning cryptocurrency wallet next year, if approved.
There are advantages over other platforms
Formal exchanges have certain advantages that banks can provide, as they are able to meet due diligence requirements. They also have an infrastructure designed for such compliance. The banks have the information necessary to allow users to buy cryptocurrencies straight from their bank checking accounts. This would make it easier for them to trade cryptocurrencies without the need for KYC (Know Your Customer).
The structure of Germany Savings Banks Association means that each bank will make the decision about whether to offer these services. Stern.de reports that several banks expressed an interest in the program.
This program could have a significant impact on the view of senior investors regarding cryptocurrencies, such as bitcoin, and ethereum. While they are considered novel and potentially risky assets, many in mainstream and legacy finance still consider them to be new. Recently, Spanish banks also expressed their interest in offering crypto currencies to customers.
How do you feel about the pilot crypto program the Germany Savings Banks might execute? Comment below.
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