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German Banks Consider Offering Crypto Services

A pilot program that will include the creation of a crypto wallet is being offered by a German association of savings banks. This association, which boasts more than 50,000,000 customers, will be taking action amid a surge in cryptocurrency interest, allegedly sparked 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 negative interest rates and inflation fear have forced citizens to look for other investment options, it could also be a way for them to make money.

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.