Germany passes law enabling banks to store cryptocurrencies.

12 comments

  1. blk0

    |Author

    Will they just store coins for you (full reserve, including physical withdrawal and deposit), or will they just sell you paper bitcoins (fractional reserve)?

  2. fresheneesz

    |Author

    Being able to store them in pretty big. It opens the way for banks to acquire bitcoin on their balance sheet (at least in Germany) as an investment. And letting them sell bitcoin is just another great onramp.

    If banks start being able to insure deposits of bitcoin, that could actually be huge for traditional custodial banking. There’s tons of people who aren’t comfortable storing their own bitcoin, frankly because it isn’t yet simple to keep your own keys securely and safely. “Not your keys, not your coins” is a good mantra for the tech savvy who want to make sure they’re safe from government and bank shinanigans, but for the average Joe who trusts their government, storing Bitcoin is a mine field of security pitfalls.

  3. LordSithaniel

    |Author

    Doesnt really change much for people.

    Those who have lots of bitcoin will just continue using a ledger, trezor or coldwallet instead.

    At tops it could be useful if you have like 10-20 bitcoin to put the seed code into a bank vault.

  4. Marcion_Sinope

    |Author

    > Currently, German banks are prohibited from possessing cryptocurrencies. This stems from a European Union Anti-Money Laundering Directive. Now however, the directive will be amended, allowing banks to not only store cryptocurrencies but to legally sell them to both retail and institutional investors.

    Pretty big deal.

    Enough for me to go full 100X Degen Mode? No, but pretty close.

  5. Mr--Robot

    |Author

    But we have news for Germans: Bitcoin is permissionless, so no need for any law to “enable” them to store their own wealth as they please.

    That law is just a mumbojombo.

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