First Fiat Bank To Offer Bitcoin Interest
All users of the German neobank, approximately 80,000 of them, are now capable of holding, purchasing, or otherwise gaining interest in their Bitcoin (BTC) holdings within their bank accounts. This is thanks to a new partnership between Bitwala and the Celsius Network, a cryptocurrency lending platform.
Bitwala stands as one of the first classic fiat banks to start offering interest on Bitcoin held in their accounts. While there are other platforms to invest Bitcoin into, with DeFi DApps being the most prominent, Bitwala is capable of offering a regulated, safe format thereof.
The bank will provide its fiat and crypto services to 32 European countries, being licensed by SolarisBank AG, one of the leading German banking firms. It should be noted that DeFi products tend to offer higher interest rates, but get trumped by the institutionalized methodology of banks, in turn.
Growing Interest In Crypto
Through Bitwala, users will be capable of buying and then holding as little as 30 Euro in Bitcoin in one of the Bitcoin Interest Accounts, receiving interest payouts weekly. The Bitcoin in these accounts is lent out via the Celsius Network to various “trusted partners,” in turn. A user will be capable of instantly converting their Bitcoin back to Euros, as well.
Ben Jones, the CEO of Bitwala, gave a statement about this, and the recent Bitcoin halving event. Jones stated that this halving stands as a reminder that fiat currencies are incapable of being eternally inflated. He explained that a growing number of people across the globe are trusting Bitcoin, and Bitwala is keen to take part in it.
As such, Jones explained, the Bitwala bank partnered up with the Celsius Network. According to Jones, Celsius stands as a leader in providing crypto loans, which will enable its customers to leverage the Bitcoin holdings they have regardless of where they are.
The Future Is Now
Throughout the past four years, many a Neobank startup has emerged and tried to bridge the gap between the crypto and fiat industries. However, only a few of the many that had tried had managed to gain access to full banking licenses. And of those, no other neobank is currently offering Bitcoin Profit inverstment accounts other than Bitwala.