A recent survey conducted by the Genoverband industry association reveals that German cooperative banks are increasingly interested in providing cryptocurrency services, including the trading of Bitcoin and Ether.
The survey indicates a significant rise in interest: 71% of these banks, known as Volksbanken and Raiffeisenbanken, are exploring the possibility of introducing cryptocurrency trading. This represents an increase from 54% in the previous year.
Cooperative banks, characterized by their community-focused ownership and strong regional presence, form one of the most extensive banking networks in Germany, encompassing approximately 670 institutions across the country.
However, customers will need to exercise patience. Among the banks considering crypto trading, 17% anticipate a timeframe of two years or more before launching their services. Conversely, 21% expect to be ready within a shorter period of six to twelve months, and around a third aim to commence services within the next five months.
DZ Bank, the central institution for this group, has already developed a technological framework available for use by all cooperative banks. A preliminary trial phase involving six banks has been successfully completed.
German lenders are adapting to escalating customer demand while simultaneously navigating competition from online banks, such as N26, and fintech companies like Trade Republic and Revolut, which are already providing cryptocurrency services.
Savings banks, known as Sparkassen, another major retail banking network within Germany, are also developing crypto services through their central provider, Dekabank.
It is important to note that Bitcoin and other cryptocurrencies remain subject to considerable price fluctuations. Regulatory bodies issue warnings highlighting the absence of backing from central banks or government entities, and they caution against the potential for losses driven by speculative trading.