Bitwala, a German neobank (operating exclusively online), has announced that all of its 80,000 customers will be provided with the facility to buy, retain and earn interest on Bitcoin (BTC).
The facility is based on a partnership with Celsius Network, a cryptocurrency lending platform.
Defiprime has pointed out that Bitwala is the first fiat currency handling classic bank to offer interest for retaining Bitcoin in a savings account.
Notably, thre decentralized finance apps offer comparable products. The DeFi products offer better interest rates of up to 8.6% per year.
However, Bitwala stands tall when it comes to regulation. Additionally, Bitwala handles and offers services for both fiat and cryptocurrencies in 32 European nations, with license from Germany based SolarisBank AG.
Customers of Bitwala will be able to purchase even €30 worth Bitcoin and retain it in Bitcoin Interest Account, with interests being paid out on a weekly basis. The Bitcoin held in the account is lent to “trusted” associates using Celsius Network.
At any point in time, Bitcoin can be converted to euros instantaneously. Bitwala CEO Ben Jones, in a statement, pointed out Bitcoin halving as a curtain call for the fact that “state money [fiat] cannot be inflated eternally”:
“At this time, more and more people trust in Bitcoin. Bitwala is the everyday bridge to it. We are now partnering with Celsius Network, the world’s leading provider of crypto loans, so that our customers can leverage Bitcoin holdings wherever they are.”
In the past four years, several neobanks have been started with an aim to close the gap between the fiat and crypto finance sectors, but only a hand full of them have received complete banking licenses, and none of them offer a combo of fiat-crypto account.
Revolut obtained its complete banking license in Europe in the final leg of 2018. However, it was not successful in obtaining an Australian banking license. Ex-Barclays executive mark Hipperson has rolled out Starling Bank, which is partially licensed, as a crypto friendly online bank.
