Bitwala to launch service that allows management of both cryptocurrency and fiat in one bank account
German blockchain banking service Bitwala is planning to launch a platform that allows users to manage fiat and Bitcoin funds within the same bank account.
The service, which is set to launch in November this year and now has about 30,000 customer signups already, will enable a smooth conversion between cryptocurrency and financial systems. The blockchain service will link legacy and fiat systems in order to let users do a cost-effective and efficient exchange between fiat and cryptocurrencies.
President of Bitwala GmbH Jörg von Minckwitz said the product will solve "one of the biggest hurdles on the road to mainstream adoption" by closing the gap between cryptocurrency and traditional banking.
The bank account provides access to SEPA debit and credit transactions as well as a debit card. Customers can receive salary payments, pay rent and instantly access liquidity through the “bitcoin bank accounts” when trading digital assets directly. Customers can set up automatic payments for service subscriptions that they regularly use.
Using a contactless debit card, customers will also be able to spend their funds instantly in shops and online (paying merchants by Bitcoins) and at any ATM or in more than 30 million locations. After spending their cryptocurrencies, users will be able to receive real-time notifications of any incoming and outgoing Bitcoin from their wallets.
Deposits will be protected up to €100,000 under the German deposit protection scheme and supervised by Germany’s banking supervisors BaFin and Bundesbank.
Bitwala was previously offering a debit card for its clients until a sudden removal of license for the card issuing partner late last year. Bitwala processed almost €100 million in volume for its 80,000 customers.