German savings banks, Sparkassen, are responding to growing customer demand by planning to integrate cryptocurrency trading and custody services directly into their mobile banking app. Ulrich Reuter, President of the German Savings Banks Association (DSGV), confirmed the move in an interview with Handelsblatt, highlighting a significant portion of their clientele have expressed interest in Bitcoin and other cryptocurrencies, often engaging with other providers.
The decision to offer these services follows a shift in strategy for the Sparkassen, who previously held reservations regarding digital assets. Reuter acknowledged the increasing demand from customers seeking to manage their cryptocurrency holdings through the established and trusted Sparkassen network. The forthcoming European MiCA (Markets in Crypto-Assets) regulatory framework also played a key role in facilitating the decision by providing clearer legal guidelines for cryptocurrency businesses.
While acknowledging that Sparkassen are entering the market later than some competitors, DSGV emphasized the importance of exercising caution due to the speculative nature of cryptocurrencies and the strong degree of trust customers place in these institutions. Reuter reiterated his personal skepticism regarding cryptocurrencies as a suitable investment for retirement planning and stressed that Sparkassen will not provide investment advice on these assets. Instead, customers will receive clear warnings regarding the associated risks.
Importantly, the implementation of cryptocurrency trading and custody services will be decentralized. Each of the 342 individual Sparkassen will retain the autonomy to decide whether or not to activate these features within their respective versions of the Sparkassen app.