Bitwala Gets Ready To Launch Blockchain-Driven Bank With Combined Crypto And Fiat Banking

Bitwala, a German blockchain startup, is ready to transform the financial sector by bringing users blockchain banking services that merge traditional fiat-based banking with crypto trading.

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Bitwala, a German blockchain startup, is ready to transform the financial sector by bringing users blockchain banking services that merge traditional fiat-based banking with crypto trading.

Bitwala Gets Ready To Launch Blockchain-Driven Bank With Combined Crypto And Fiat BankingBitwala transforming banking

After completing a $4 million funding round that featured Earlybird Venture Capital, Bitwala has said that it will soon be launching a platform that allows users to manage both Euro and Bitcoin transactions using a single bank account.

According to information posted on its website, the project will see Bitwala work alongside its partner bank to build a German-based online bank account designed to allow its users the opportunity to “directly buy and sell bitcoin.”

A rollout of the service is expected to happen by November, serving an initial customer base of approximately 30,000.

Registered users will have access to a German bank account and benefit from a contactless SEPA debit and credit card to facilitate blockchain banking.

Account holders will find it easy to manage recurring payments and access liquid assets when completing a crypto purchase. Users will have also have access to a crypto wallet from where they can trade Bitcoin (BTC).

A Bitwala account holder will, for example, be able to receive their salary and pay for utility bills and groceries using either fiat or crypto all from one account. 

Bitwala first launched its services in 2015, with the founders envisioning a platform that enhances value exchange in an efficient, cost-effective environment.

Since its inception, Bitwala has worked to develop a banking solution that provides the best of online banking involving both the established traditional financial system and the emerging force of cryptocurrency.

The company, in collaboration with its local bank partner, now finds itself with the appropriate technical and technological skills to offer such services.

At the moment, Bitwala’s executives say that they have prepared all the required documents to meet legal and regulatory requirements to set up a banking business and provide financial services.

Launching a regulated banking service will see the company reach its primary objective of providing a platform that affords the broader financial ecosystem a smooth transition between the worlds of crypto and fiat.

According to the company’s president Jörg von Minckwitz, the upcoming product could provide one big step towards mainstream adoption of digital currencies. Commenting after the latest funding round, he said:

“The cryptocurrency community is eagerly awaiting the launch of our new service. I’m very proud that with our new product we will close the gap between crypto and traditional banking and solve one of the biggest hurdles on the road to mainstream adoption.”

Simplified access to crypto for all

Christian Nagel, a partner at Earlybird VC, agreed with Minckwitz, explaining that Bitwala’s background combined with the team’s experience was the reason they joined the investment.

He said that the venture would provide everyone with a chance for a seamless and straightforward way to engage with cryptocurrencies. Users will operate within the “comfort and security” of a bank account.

Security is the firm’s top priority and users will benefit from supervisory oversight from banking regulators BaFin and Bundesbank, and deposits will be protected under Germany’s deposit protection scheme up to €100,000.

Experts believe that Bitwala will succeed in offering the new product due to its earlier experience. Up until the revocation of a license issued to its partner in late 2017, the firm was a global leader in money transfers utilizing blockchain technology.

At the time, the platform efficiently processed over €100 million in transaction volume for a customer base that reached nearly 80,000.

Preregister for Bitwala’s upcoming blockchain banking solution

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