Since the inception of crypto and digital wallets, we have seen divided opinions about their value. Some harbor the belief that crypto is the future of finance and the global economy. Others remain skeptical, seeing it as a scam and a waste of time.
Agreement aside, it's pretty much a foregone conclusion that bitcoin and Ethereum are here to stay, impacting the lives of millions worldwide. El Salvador is just one example of this, with the move to make it legal tender for its citizens. Moreover, global banks are jumping into the game at a blistering pace.
A Crypto Game Changer In Germany?
In Germany, the rumor mill is in full bloom about a new entrant into the world of cryptocurrency trending. And the news is gigantic. The Sparkassen, a well-known financial institution, is immersed in a cryptocurrency project that will allow users to trade digital currencies such as bitcoin or Ethereum in the not-so-distant future.
Germany’s Savings Bank must first vote on the project, likely in early 2022 when the Christmas season has passed. If given the green, a first version of the long-awaited digital wallet could be launched within a year.
Many crypto experts see this as not only an important project for Germany but also the European Union, setting a precedent for the European financial landscape.
The Sparkassen, a group of savings banks that have existed across Germany since the first one opened in Hamburg in 1778
is widely considered the market leader among German financial institutions, with around 50 million customers. Its entry into the cryptocurrency market would allow a larger target population to trade digital assets. This is a decision that other major banks have chosen not to tackle.
According to the project roadmap, Sparkassen aims to cut intermediaries, such as bitcoin exchanges. Also, they would not require any additional verification procedures or intermediary transactions.
All of this is seen as an advantage for Sparkassen customers who will be able to buy cryptocurrencies directly through their current accounts. It also throws some shade at Coinbase where new customers have to identify themselves first.
In the end, each of the approximately 370 institutions that make up the Sparkassen bank group will decide independently with each free to introduce cryptocurrency trading or not.
All of this is signaling that the crypto landscape is opening up as an alternative to specialized services offering cryptocurrency trading. In addition, established payment service providers such as Paypal have also entered the market. Now, with a traditional player like The Sparkassen venturing into this new financial investment, it is projected that the broader crypto landscape will gradually open up.
More than anything, Sparkassen’s move symbolizes a growing trend on the part of traditional banking institutions to modernize. Perhaps this will serve to encourage more institutions to use cryptocurrencies. For now, all we can do is wait for the committee votes and trust that the bill will be approved.
