The German bank, WEG Bank AG, announced it would process payments in the cryptocurrencies as of 2020. This financial institution, which is partially owned firms Blockchain Nimiq, TokenPay and Litecoin Foundation, is opening its doors to retailers who use cryptocurrencies. For the time being, this group only represents a proof of the sandbox. Matthias von Hauff, CEO of WEG Bank AG, stated on this point that: “it is Not necessary to be a customer of the bank (…) Everything we do is to provide the regulatory framework in the background, to make sure that when the retailer receives the cryptography, actually receive fiat in your bank account, if they so wish”. This implies that, although there are a user of a German bank, you will be able to enjoy the benefits it brings to perform cryptographic operations. The news was well received within the community of the encryption, since that is a way to promote digital currencies among people who still have not ventured into the ecosystem. In addition, von Hauff said that this new “actor” banking will allow retailers to send payments to cryptographic to their own wallets. It may also be possible to withdraw money in cash directly into a bank account. The program will be administered by the brand new fintech de WEG Bank AG, TEN31. The program is designed to start with Bitcoin, Litecoin and several other cryptocurrencies not revealed by the times. In turn, it was reported that the WEG Bank AG was looking to integrate an exchange. “We do not limit to only point of sale terminals. We will make the payment on-line, atms, and we are currently investigating the option of integrating an exchange (crypto) in the bank, too.”
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The German bank brings security
One of the most important points that brings this news is related to the regulations. The WEG Bank AG will be the regulated entity, which shall provide the services in conformity. As the German bank is an institution that has already had to comply with the regulatory standards before, it will be easier for him just to pass by a process of adaptation to having to start everything from scratch. That can be traded with cryptocurrencies in a regulated entity, it makes people develop a certain level of trust towards this type of assets. As noted, Elion Chin, co-creator of Nimiq: “This solution will cause the incorporation to enter in cryptography is much more fluid (…) I Hope that this type of solution, make more fluid, fast, and easy, to the point that my parents also feel comfortable with him.” The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.