German banks want to allow customers to invest in cryptocurrencies
German savings banks are planning to open up the possibility for their customers to invest in large cryptocurrencies like Bitcoin and Etherium, and directly from their accounts. This category of banks, also known as Sparkassen, is working on a pilot project for its own cryptocurrency wallet and exchange. According to local news sources, additional announcement and information about the new products of the German banking sector will appear early last year. We tell you more about what’s going on.
Sparkassen are commercial banks that run savings banks in German-speaking countries in a decentralised structure, with each bank operating independently. They have about 50 million customers, and according to preliminary data, the savings banks have assets worth a trillion euros or $1.2 trillion.
It should be noted that in general, global banks are slowly starting to tap into the cryptocurrency trend. In particular, last week it became known about the possibility of buying cryptocurrencies for residents of Colombia, who are also customers of Bancolombia. And coin purchases will be possible thanks to a partnership with Gemini, a cryptocurrency exchange from the billionaire Winklevoss brothers. Read more about the innovation in a separate article.
Banks and cryptocurrencies
Who’s buying cryptocurrencies
The news was confirmed in an interview with Cointelegraph by a representative of the German Savings Banks Association (DSVG). Here is a rejoinder from the experts, in which they share their view of the situation.
More and more consumers are interested in crypto-assets. One in ten German savings bank customers claim to own or have owned crypto-assets. Given their expectations, the savings bank financial group should also explore the potential for this kind of investment.
We believe that the real number of cryptocurrency holders could be even higher. Still, it is unlikely that large cryptocurrency investors will share their hobbies with centralised entities like banks. At the very least, it's safer not to disclose their connection to digital assets.
Sparkasse
A team of experts from a German IT services provider called S-Payment is currently “exploring ways to provide a secure storage option for crypto-assets in a wallet for a select group of customers”. A related pilot project is to start with selected savings banks. Each of the 370 Sparkassen is independently deciding whether or not to integrate cryptocurrency trading. That said, a number of banks have already shown significant interest in the crypto platform.
Cryptocurrency exchange FTX is also pushing to expand its interests in the crypto space. A deal between the trading platform and the Golden State Warriors basketball team was revealed this week. The aim of the deal is to allow its own branding on the uniforms of both basketball and NBA 2K cyber athletes, as well as the Chase Center arena in San Francisco.
Partnership between FTX and Golden State Warriors
The agreement between the company and Golden State Warriors cost FTX $10 million. That’s not a lot when you consider that the volume of trades on the exchange alone exceeded the $3.1 billion mark overnight.
The partnership was commented by Golden State Warriors president Brandon Schneider. Here’s the expert’s rejoinder, in which he shares his perspective on the situation. Schneider’s quote is quoted by Decrypt.
FTX is a company that came to our attention a couple of months ago. We think we are only at the very beginning of cryptocurrency adoption. We are exploring the potential of the cryptosphere and waiting for it to develop.
Accordingly, the team expects the collaboration to continue and even expand in the future.
As a reminder, different cryptocurrency companies have started to get the attention of sports event fans very actively this year. Last month, the Crypto.com platform bought the naming rights to the Staples Center sports complex for $700 million. Well, Binance continues to partner with football clubs, so that its name can now be found on the players’ uniforms.
Binance logo on a Porto uniform
We believe that the ability to buy cryptocurrencies directly from the bank will be the next step in the mass popularisation of digital assets. Right now, though, many people don't take the risk of dealing with them because they think that dealing with a cryptocurrency exchange in advance is something too complicated. The banks will surely simplify the procedure, which means that the coin industry should be ready to accept new fans - and en masse.
Look for even more interesting things in our millionaires’ crypto chat. There we will talk about other topics related to the world of blockchain and decentralisation.
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