While most countries are struggling to understand and regulate cryptocurrencies, Germany might actually introduce them to the general public. A new proposed bill in the country suggests that as of next year, clients should be able to store Bitcoin and other digital assets directly in banks.
Bitcoin Storage In German Banks?
Germany might be on its way to lead in cryptocurrency adoption. A recent report shows that the country is looking to implement a new set of rules to benefit cryptocurrency investors. As of 2020, German banks will be reportedly adding another feature for their customers – the storage of Bitcoin and other digital assets.
Under the proposed bill, financial institutions will purportedly allow cryptocurrencies to be used in similar manners as traditional assets. Customers would still be able to operate securities such as stocks and bonds. Additionally, when using online banking, clients will reportedly also be able to navigate their cryptocurrency assets, just as they have done with fiat money until now.
According to the report, this bill is a newer version of a previous one, which was mainly trying to reduce money laundering schemes.
Naturally, such a potentially impactful move had its fair share of opposite opinions.
On one side appears to be the head of a consulting company, Sven Hildebrandt. Reportedly, he seemed pleased with this new bill, saying that the country might become a crypto-haven and that it is playing a “pioneering role” in the regulation of crypto assets.
The banking association BdB also expressed positive feedback, as well. Association officials reportedly said that the bill is a move in the right direction as banking institutions have experience in the safekeeping of assets. Banking storage of cryptocurrencies might protect investors and also possibly prevent money laundering and terrorist financing because of the regulations within the system.
However, not everyone has shown such positivism. The report displays criticism coming from the Baden-Wuerttemberg consumer center. Apparently, financial expert Niels Nauhauser thinks that banks are too aggressive when looking for new clients and adding cryptocurrencies to their portfolio might result in a harmful loss:
“Basically, banks sell a variety of financial products if the commission is right. If they are allowed to sell cryptocurrencies and keep them for a fee, they run the risk of turning their assets at risk of a total loss to their clients, without them knowing what they are getting into.”
Whether or not this bill is entirely accepted and allows banks to store cryptocurrencies, it still appears as a step forward for mass adoption and broader use of digital assets.