We all know that traditional bank savings are not profitable right now. For this reason, many people decide to invest their money on their own, either in cryptocurrencies or in traditional stocks. This is exactly what they are trying to take advantage of in German savings banks (also known as Sparkassen), as it has become clear that they intend to allow customers to invest in large cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) directly from their current accounts. ).
Several Savings Banks have teamed up to launch a pilot program for an in-house cryptocurrency wallet next year and allow digital currency trading, according to a December 13 Capital article.
The pilot project will be approved by the Sparkasse commissions early next year, while the banking association aims to develop related services by early 2022. A representative of the German Savings Association confirmed the news to Cointelegraph, stating:
“More and more consumers are interested in encrypted assets. One in ten customers of German Savings Bank states that it owns or possesses encrypted assets. “Given their expectations, the Spaarbank Finance Group should also consider encrypting assets.”
The spokesman added that a team of experts from German IT service provider S-Payment “is now exploring ways to provide an option to securely store encrypted assets in a wallet for selected clients”.
A similar pilot project should first be started with individual savings banks, with each of the 370 Sparkassen deciding whether or not to enter into encryption transactions. According to Capital sources, several banks have already shown significant interest in the encryption platform.
This news can be considered as huge news, as German Savings Bank is active in several German-speaking countries. All banks together have about 50 million customers worldwide and are said to have about $ 1 trillion in total assets. Of course we can not predict how much of this money will eventually flow into the encryption market, but we can say that this will give the market a huge exposure to people who would not normally enter the market so quickly.
Our neighboring country has been very busy in recent years with regulations and further development in the field of cryptocurrencies. For example, it has previously been announced that three political parties in the country are working to create a “level playing field” in Europe for new, digitally focused business models, including those focused on cryptocurrencies or digital assets.
In addition, the Federal Financial Supervisory Authority issued a business license to store cryptocurrencies for the German branch of Coinbase earlier this year and the so-called Spezial Funds were also authorized to allocate 20% to cryptocurrencies from 1 July.