The well-known German savings bank is working on a secret project that will enable them to trade BTC and ETH cryptocurrencies. Find out more in our latest bitcoin news.
The German Sparkasse is working on a project that will enable customers to trade cryptocurrencies such as Bitcoin and Ethereum. A dedicated team from the IT service provider S-Payment is preparing the concept, and the banking committee will vote on the project at the beginning of the year. If the vote goes through, the German savings banks can introduce crypto trading services. In Germany there are around 370 savings banks that come under the umbrella term of the German Savings Banks and Giro Association and work decentrally, ie each savings bank is independent and is managed decentrally, focusing on the customers of the region in which it is based.
With a total customer base of US $ 50 million and assets under management of US $ 1.58 trillion, the savings banks are the front runners among German financial institutions. The initiative came after the newly formed government signed the coalition agreement that identified cryptocurrencies and blockchain technology as the main focus for the country’s development over the next four years. The plan provides for the bank’s customers to be able to buy and sell crypto using their bank accounts without going through additional verification procedures.
Based on the principle of regional management, each savings bank decides for itself whether to use this innovation. The banks have already shown interest in the project and other German investors are also looking for other investments. The move came amid rising prices and rising inflation in the euro area, which hit 4.9% last month, which put even more pressure on the European Central Bank to review its low interest rate policy. Helmut Schleweis, President of the German Savings Banks and Giro Association, called for the combination of low interest rates and rising prices to be a toxic mixture and that it would be more difficult to stop the decline in assets.
As recently reported, the German asset manager Union Invest is the investment arm of the DZ banking group, which is taking another small step towards offering crypto investments to private investors. They will be making BTC as a smaller percentage of some of their funds. As recently reported, portfolio manager David Barthe said the company is considering adding BTC to its funds, which comprise 1-2% of its portfolios, in smaller amounts, and that will begin on an undisclosed date in the fourth quarter.
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