The location at the crypto market, one might think, looks like the calm before the storm. According to well-known Bitcoin experts and analysts one is inclined to say: It could go up and down. Depending on the direction in which the Bitcoin course will soon move, we could either sit on our horns in the next Bull Run or ride the bear into the abyss.
In the midst of this changeable mood, a message is haunting the crypto world: Germany could become a crypto Mecca in 2020 because German banks will soon be selling Bitcoin. Time to examine the promise of salvation more closely.
Bitcoin banks, Germany and the new custody law
The German Bundesrat waved through the resolution recommendation of the finance committee for the custody of Bitcoin & other crypto currencies on 29 November. This had spoken out for the deletion of the separation order of Bitcoin and other financial services or regulated banking transactions. This initially means that German banks will also be allowed to store Bitcoin & Co. from 2020.
In the crypto scene, the news immediately turned upside down: Germany would become the new Bitcoin Mecca because German banks would soon be selling Bitcoin as well. As soon as and when the new law is passed, this is theoretically possible. Whether banks will, however, engage in the dance with crypto currencies is another question. After all, Bitcoin Trading is still a risky business.
The crypto plans of German banks, however, do not yet seem too mature. Thus answers to inquiries with Commerzbank, Santander, DZBank, the Bavarian Landesbank, citizen of Berlin savings bank as well as the Volkswagen bank are still outstanding so far. Only ING’s press office confirmed that it was observing market developments. However, there have been no concrete plans to integrate Bitcoin & Co. so far.
Frank Hartmann, press speaker of the German bank, let similar announce to BTC ECHO:
“Deutsche Bank is monitoring the issue, but there are currently no plans to enter the crypto currency custody business.”
Legal certainty paves the way for adaptation
Nevertheless, from 2020, the coming law will prepare a regulated soil in which an ecosystem will be given space to develop. The abolition of the separation requirement will ultimately lead to crypto currencies being able to take place in the same legal context as other regulated banking transactions. After all, more than 10 years after the first emergence of technology, the jungle of paragraphs is clearing somewhat.
Accordingly, there has been steady progress in the German ecosystem. Just recently, for example, we received the news that Kapilendo is making it possible to finance small and medium-sized businesses via tokens for the L’Osteria pizza chain – the adaptation of blockchain technology is spreading.
What would Satoshi Nakamoto say?
If one remembers the basic idea behind Bitcoin, the dreams of crypto adaptation by banks seem absurd. Wasn’t Satoshi Nakamoto’s idea to design a decentralized peer-to-peer money system without middlemen like (central) banks and/or institutions?
The idea that it now needs mediating instances to bring technology to women and men seems almost contradictory. The spirit of Satoshi continues to dance with the ghosts of decentralization. Decentralized Exchanges in particular have not yet managed to assert themselves in the highly competitive crypto market. We did not report on the closure of the Danish decentralized exchange (DEX) CryptoBridge until December 2. The reasons: legal difficulties and a tough market situation.
Not everywhere things go as well as they do in the Federal Republic of Germany. For example, the head of the Russian central bank warns against crypto currencies. She compares Bitcoin & Co. with gambling in the casino and reminds us of the bubble character of Bitcoin & Co. Meanwhile, China is working on its own blockchain strategy. The “Blockchain Services Network” – a data octopus that grows every day and serves the Communist Party with data – has recently been launched.
The Central Bank in South Africa is similarly restrictive – from 2020, for example, the controls applicable to fiat currencies are to be extended to include crypto currencies. Uncontrolled cash flows are to be stopped as quickly as possible.
An Ethereum developer, however, transported political explosive material. He was arrested on 28 November in Los Angeles. At a conference in North Korea he is said to have spread knowledge about the handling of crypto currencies for illegal purposes.