Germany's trillion-euro savings banks mull crypto wallet
Reuters
Published Dec 13, 2021 09:35AM ET
Updated Dec 13, 2021 12:13PM ET
By John O'Donnell
FRANKFURT (Reuters) -Germany's savings banks, a conservative bastion that holds more than 1 trillion euros for thrifty Germans, is looking into offering a wallet to trade cryptocurrency, a group of the banks said on Monday.
The project marks a potentially radical departure for the banks, whose customers still use cash and eschew risky investing or heavy borrowing.
Entrusted with the savings and investments of roughly 50 million customers, they make up Germany's biggest financial group.
"The interest in crypto assets is huge," a spokesman for the German Savings Banks Association said, with reference to the pilot project. He said no decision had been taken and that the savings banks group was currently sceptical.
German magazine Capital first reported the news.
The move comes against a backdrop of high inflation and penalty charges on banks and savers from negative interest rates, fuelling a heated debate in Germany about central bank money printing.
It has prompted Germans to invest more in property and elsewhere to avoid what some have dubbed the "expropriation" of their wealth.
Last month, Helmut Schleweis, the president of the German Savings Bank Association, called the combination of low interest rates and rising prices a "toxic mix," saying it had become harder to stop the erosion of wealth.
Bitcoin, the world's largest cryptocurrency with a market cap of roughly $1.2 trillion, has risen strongly, fuelled in part by fears of inflation, with its limited supply seen as offering protection.
Bitcoin also has dozens of smaller rivals, all vying for a share of the wider $2 trillion digital currency market.
Among the major "altcoins" - as all cryptocurrencies aside from bitcoin are known - some, such as ethereum, aspire to be the backbone of a future financial system. Others, like Dogecoin, are barely used in payments.
Retail punters are pouring money into them, despite their volatile track record, in hopes of a quick profit.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.