German savings banks may enable their customers to trade in cryptocurrencies as early as 2022.
German savings banks are working together on a cryptocurrency wallet project. The tool will allow their customers to carry out transactions with crypto directly through their accounts, Capital, Finanz-Szene and Finance Forward reported.
The project is being developed by payment IT services provider S-Payment. A pilot version of the wallet is scheduled to be presented for review inside banking structures in early 2022. The savings banks’ committees will have to vote on the project, and if it is greenlighted, a custom version will be released soon.
The final decision on access to crypto will be made by each bank’s board individually. The main benefits for customers should be trust in the banking sector and no need to undergo additional identification.
There are about 370 savings banks participating in the project, with a combined customer base of around 50 million. Total assets under the management of the banking group are estimated at about $1,58 trillion.
In Germany, cryptocurrencies and blockchain technology have been adopted as one of the country’s key development areas for the next four years. Banks are open to crypto transactions starting in 2019. In March 2020, digital assets officially became financial instruments. Since April 2021, German institutional funds have been allowed to invest up to 20% of their own assets in cryptocurrencies.
