According to Sparkasse’s plans, the bank’s customers would be able to buy cryptocurrencies, including Bitcoin and Ethereum, directly through their checking accounts. This would be an advantage for customers, who would no longer have to go through KYC processes of joining exchanges to trade crypto. The chain of savings banks also underlined the trust that customers have in its brand, as financially conservative Germans warm to the volatile asset class.
However, the Sparkasse committees must approve of a pilot project before any action can be taken, and it can happen during the vote early next year. If approved, the banks could offer what is effectively a digital wallet later in the year. Larger banks including Commerzbank and Deutsche Bank have indicated that they too are considering offering digital currency storage. This makes sense as the bank is in a better position to monitor transactions and account activity.
In addition, the Sparkasse initiative will allow users to keep track of their digital currency holdings on an app. That would be useful if people want to use them as payment instruments or store value.
This pilot projects would likely start at individual savings banks. There are 370 institutions around the country to independently determine whether to offer crypto trading or not. The IT service provider S-Payment is preparing the concept. With around 50 million customers, the successful implementation of Sparkasse’s digital asset services could be a major boom for crypto adoption in Europe. Germany is well known as a crypto friendly country and a lot of it comes from the progressive banking system. It has a great track record in adopting digital technology, particularly with regards to e-banking. Therefore, it would be no surprise if Sparkasse continued its innovation streak and helped bring cryptocurrency to more people in Germany.
