Cryptocurrencies have seen much adoption this year, and the trend is expected to peak in 2022, with more institutions rolling out crypto services. The German Savings Banks Association is currently working on a project to make cryptocurrencies available to their customers.
Details of the project were highlighted in a local publication, which noted that in 2022, Bitcoin and other cryptocurrencies will be available to over 50 million customers. The pilot phase of the project needs a nod from the respective committees.
German savings bank to adopt cryptocurrencies
As reported by the publication, the banks are working on this project with the help of S-Payment, an IT service provider. A dedicated team from this firm will aid the banks in developing the concept.
The committees of these banks will have to vote on this project, with the voting being scheduled for early 2022. If they give the go-ahead, a crypto wallet developed by these banks will be launched later in the year.
This project will transform the banking sector in Germany and the entire European Union. As aforementioned, the savings banks have around 50 million customers in total, and they are the largest financial institutions in Germany.
Moreover, launching this wallet will boost cryptocurrency adoption in Germany. Currently, none of the leading banks in Germany has declared their interest in offering crypto exposure to their clients.
The pilot phase for this project is expected to include individual savings banks. Additionally, none of the institutions under the umbrella will be forced to offer crypto services. After the pilot phase, the 370 banks under this association will make an independent choice of whether or not to roll out crypto trading.
The publication mentions that sources state that the banks have shown interest in rolling out crypto services. However, the association is yet to issue a formal plan regarding the same.
Crypto adoption on the rise
The crypto market has recorded massive adoption this year. The sector has attracted leading Wall Street banks in the US, such as JPMorgan and Goldman Sachs, which have launched crypto services to professional and retail investors.
Moreover, payment firms such as Visa, Mastercard and PayPal have rolled out crypto-related services this year following an influx of demand from customers. The largest bank in Australia also recently launched a crypto trading avenue for its customers.
The global level of crypto adoption has also increased significantly because of the rising inflation rate. Cryptocurrencies such as Bitcoin are an ideal hedge against inflation, creating more demand for these products.
In the US, inflation stands at a three-year, which has caused a ripple effect globally. Bitcoin has a capped supply of 21 million coins, and these are the only ones that will ever exist. This ensures that the coin does not suffer from inflation.
Despite the rising adoption rate, the crypto market is currently on a strong downtrend, given that most coins are losing value. The bear cycle is happening a little over a month after Bitcoin reached an all-time high of $69,000.
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