An association of savings banks in Germany is seeking to provide customers with cryptographic services in a pilot test, including the development of crypto wallets. The association has more than 50 million customers and will act in a wave of cryptocurrency interest ostensibly triggered by inflation concerns and negative interest rates. However, the plan is still under study and a formal decision has not yet been made.
German Savings Bank may set foot in the cryptocurrency field
The largest bank association in Germany is consider According to a report by the German magazine Capital, it provides services related to cryptocurrency to more than 50 million customers. This may be a way for banks to take advantage of the current expansion of German interest in cryptocurrencies. Negative interest rates and inflation concerns make citizens look for alternative investment channels.
As we all know, this group of banks is one of the most conservative banks in the country. Their customers still hold cash and will not risk using funds for other investments.
The representative of the Association of German Savings Banks stated:
The interest in crypto assets is huge.
The proposed pilot is still under consideration, and the committee must vote on its approval. If approved, an available cryptocurrency wallet may be provided next year.
Advantages over other platforms
Compared to formal exchanges, banks can show certain advantages because they usually already meet due diligence requirements and have a structure designed around such compliance. Given that the bank already has this information, which can ease the user’s transaction experience, they can directly use their checking account to buy cryptocurrency without going through the KYC (Know Your Customer) procedure.
Given the structure of the German Savings Bank Association, the choice of providing these encryption services varies from bank to bank, which means that each of the 370 banks will decide this for themselves.but Sternd Said that many banks have expressed interest in the plan.
If approved, the plan may change senior investors’ views on cryptocurrencies such as Bitcoin and Ethereum, which are still considered new risky assets by mainstream and traditional financial institutions.Bank of Spain also Express Recently interested in offering cryptocurrency to their customers.
What do you think of the crypto pilot program being considered by the German Savings Bank? Tell us in the comments section below.
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