A pilot program to test crypto services for customers by a German savings bank association is underway. This would also include the development and maintenance of a cryptocurrency wallet. This association, which serves more than 50million customers, is looking to offer crypto services in a pilot test. It would do so amid a surge of cryptocurrency interest, ostensibly spurred by negative interest rates and inflation concerns. The plan is still being considered and no decision has been made.
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 amplified interest crypto has in Germany. In a time when inflation fears and negative interest rates have forced citizens to look for other investment options, banks might be able do so.
This bank group is well-known for being among the most conservative in the country. Customers still hold cash and don’t risk their capital by making other investments.
The German Savings Banks Association representative stated:
Crypto assets are attracting a lot of interest.
The committee has to approve the pilot proposal, which is still under consideration. A working cryptocurrency wallet could be offered next year if it is approved.
Advantages over Other Platforms
Banks have some advantages over formal exchanges. They typically meet due diligence requirements and have a structure that is designed to ensure such compliance. Users would have an easier trading experience if they could purchase cryptocurrency directly from their checking accounts without having to go through 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 says that this program has been requested by many banks.
The program, if approved, could transform the perception of senior investors about cryptocurrencies like bitcoin and ethereum. These assets are still considered risky and new by many mainstream and legacy finance. In recent times, Spanish banks expressed an interest in offering cryptocurrency to customers.
What do you think of the crypto pilot program the Germany Savings Banks might execute? Leave your comments below.
Sergio is a Venezuelan cryptocurrency journalist. Sergio is a cryptocurrency journalist based in Venezuela. He says he was late to the game and entered the cryptosphere during the December 2017. price rise. He is a computer engineer by trade, has lived in Venezuela and was impacted by the cryptocurrency boom on a social level. This gives him a unique perspective about crypto success and how it can help the underbanked and unbanked.
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