Top German Banks Prepare Crypto Services as Mainstream Adoption Looms

December 21, 2021     6 minutes

Cash.Tech Newsletter #8: German Savings Bank Association, Commerzbank and co. to debut crypto services

After spending the previous decade fighting cryptocurrencies, some of the world’s largest banks are reconsidering their stance. Recent developments reveal that Germany’s largest banking association and two of the largest banks in the country are preparing to enable buying and selling cryptocurrencies from checking accounts.

This week’s Cash.Tech Newsletter reviews recent crypto moves in the German banking industry and why they could prove crucial in onboarding a majority of the European country’s populace to the crypto space. As banking corporations enter the crypto game, we also remind investors that it is prudent to choose self-custody over third-party products such as those offered by banks.

Cash.Tech development update

Together with the mainnet, the Cash.Tech development team has now successfully integrated the NFT Display feature on three networks including Ethereum, Polygon and Binance Smart Chain. The team has also rolled out the audio and visual NFT option, unlocking a new level of engagement for NFT holders.

The next implementation on the roadmap is the “Token Swap” feature hinted at in last week’s release. UI design has been completed and the team is also making early progress in the core development process. The goal is to launch the token swap feature within six to eight weeks, with initial support for Ethereum and to subsequently introduce other networks.

The Cash.Tech team reiterates its commitment to deliver core wallet features on the roadmap within the specified timeline. We will keep the community up to date regarding development progress, especially as we head into the period before the Cash.Tech wallet’s mainnet release.

German Savings Banks Association (DSGV) mulls crypto services

The German Savings Banks Association (DSGV) is a network of over 370 savings banks in the European country. Local media agency, Capital, first reported rumors that the association is working on a project that will allow it offer to customers the ability to buy and sell cryptocurrencies such as Bitcoin and Ethereum.

DSGV reportedly recruited a dedicated team of engineers at IT service provider S-Payment to develop the crypto solution. The plan is to pilot the service at individual banks that agree to do so and if successful, other banks within the association can roll out the service to their customers. Banks hope to build on the trust they have already established with customers, and also the fact that buying crypto directly from their checking accounts would remove the lengthy process of having to sign up and verify their identity on regular cryptocurrency exchanges. Capital further noted that while member banks have indicated interest in the offering, DSGV’s committees will vote on the project in the first half of 2022 and, if approved, the plan is to launch an earlier version of the service within the year.

Alexander Hartberg, spokesman for the German Savings Bank, subsequently confirmed the development. He admitted that the project is still in a “feasibility study” stage, with the goal of finding out the “possibilities and risks a wallet offers” and the best one “in which Sparkasse customers can keep crypto-assets safely.” Hartberg also confirmed a committee vote scheduled for early next year.

The German Savings Bank’s planned crypto service is a giant step toward mainstream adoption in the European country. Industry growth tracker, Triple A estimates that just 2.1 million people or 2.6% of the country’s population own cryptocurrencies.

(Source: Triple A)

However, the German Savings Bank Association serves over 50 million customers, many of whom will likely get their first taste of cryptocurrency investing if the planned offering materializes. The involvement of the country’s leading banking association could also trigger a similar move by other commercial banks who have been skeptical about diving into cryptocurrencies.

Two more German banks following suit

Following the German Savings Banks Association’s crypto services move, fresh reports revealed that two other banking corporations in the country, Commerzbank Germany & Volksbanken und Raiffeisenbanken, were also actively researching the possibility of offering crypto services.

A Commerzbank spokesperson said that the bank is “working intensively on the subject of crypto assets i.e. on the safekeeping and trading of non-physical assets.” Similarly, a Volksbanken und Raiffesisenbanken representative confirmed that the group is “pushing ahead with its strategic considerations in order to decide whether and in what form its customers should be able to directly trade and hold cryptocurrencies.”

The coming years will likely see these traditional banking firms making their crypto debuts, further legitimizing crypto as an asset class and kickstarting a wave of mainstream adoption in Germany and indeed globally. However, investors must realize that the new financial system underpinned by cryptocurrencies is based on the principle of self-ownership and the ability to transact freely without relying on a third-party, especially banks. Banks are traditionally accustomed to blocking user accounts for trivial reasons and also attaching exorbitant fees to their products.

Enjoy all the possibilities of crypto without banking on a bank

The Cash.Tech wallet is designed from scratch to offer users access to all the possibilities of crypto in a fully self-custodial fashion. Users can send and receive all kinds of crypto assets (including NFTs), swap between different assets, and pay their favorite merchants using one single application on their mobile. Cash.Tech’s solution also unlocks the emerging world of Web 3.0, allowing users to access on-chain products in the decentralized finance (DeFi) world to grow their wealth.

Cash.Tech wallet is already connected to the testnet and fully functional for Android and iOS devices. Make sure to download the wallet to get first-hand experience.

You might also be interested to read these articles

Cash Tech Burn Program

Cash Tech is introducing a token burn program that will make CATE tokens significantly more scarce by radically reducing the total supply. The burn program will destroy 10% of t...

Cash Tech Launch Designs Revealed!

The Cash Tech application is quickly approaching launch. In August, the first version of the Cash Tech app will be launched. The first version will be available in both the Goog...

Cash Tech Goes NFT

Interest in NFT is at record highs! Google search volume for the term “NFT” is currently over ten times greater than the peak search volume for the term “DeFi”. Cryptocurrency e...

Join over 7,132+ Cash Tech Global Community, Ask general questions
and chat with the worldwide community on Telegram.