German Bank announces to support Bitcoin; says it's important to own private key - page 4.

mynonce

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Quote from: BlackHatCoiner on December 30, 2021, 03:20:30 PM

A good question is: Why would a bank want to give the option to their customers to hold bitcoin themselves? Isn't it against the whole point of a bank?

You have already mentioned the strict regulatory requirements. Does your offer fall under the crypto custody business and thus under the BaFin authorization requirement?

Streb: No. That is the jumping point. Because the customer manages his private key himself, we have no way of accessing his Bitcoin, and so we do not store it. So we don't fall under the crypto custody business either. With our offer, we focus on educating our customers about Bitcoin and supporting them in choosing and setting up their Bitcoin wallet. The fact that we don't need a BaFin license makes a lot of things easier.

translation by Google

BlackHatCoiner

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A good question is: Why would a bank want to give the option to their customers to hold bitcoin themselves? Isn't it against the whole point of a bank? I mean it's fine if they announce that they keep reserves in bitcoin, but why promoting it as a currency if it makes your business poorer?

The thing I like the most from their policy is this:

Quote from: 1miau on December 30, 2021, 01:59:20 PM

We will only offer Bitcoin, not other Crypto assets. Quite simply because only Bitcoin is really a decentralized blockchain application and from our point of view only Bitcoin offers sufficient security against manipulation. All other crypto assets are not comparable to Bitcoin.

Gyfts

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Quote from: 1miau on December 30, 2021, 01:59:20 PM

Most important point: it’s important to own your Bitcoins:
The most important topic when trading or storing Bitcoin is to be owner of your so-called private key, (secret key allowing access to your Bitcoin). This is where our first considerations were made.

I don't think the vast majority of Bitcoin holders understand how important this concept is. Any coin to which you do not hold ownership of the private keys are not your coins, it's merely an agreement between you and the true owner of the private key that the coin is yours, subject to change on a whim by the private key's owner. The number of crypto investors that store their crypto on exchanges or 3rd party apps is palpable. Seeing a bank take this approach is refreshing.

m2017

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This can cause a chain reaction. Banks from other countries will also join this game in order to keep up with pioneers like German bank. That's when the fun begins when other bank start making such statements at the distillation.

German bank is not a bank from some 3rd world country with a weak economy and opportunities. This event could be the reason for a very serious surprise in the coming year.

In fact, such a statement from a bank representative seems to me very unexpected. Are the previous stages of Grief completed and bank's "accepance" stage started?

hosseinimr93

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Quote from: jackg on December 30, 2021, 02:11:52 PM

4 is very interesting too but for usability the bank may also want to control (or at the very least) store backups of the private keys they issue their customers.

I read the article completely. It seems that they won't store users private keys and will let them to be the only and the real owner of their fund.

From the translated version of the article shared by 1miau (done by google translator):

Quote

The customer manages his private key himself, we have no way of accessing his Bitcoin, and so we do not store it.

They even encourage people to use cold wallets.

Quote

If you decide to invest in Bitcoin, we will help you with the purchase of the necessary digital purse, the so-called wallet. We want to support the customer so that he can keep his Bitcoins himself. We also offer customers a so-called "cold wallet"

jackg

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The first point is definitely an important one to allow the bank to educate customers on the features of bitcoin (such as the fact it can't be charged back).

I feel, though, that banks will initially start offering this service on request and won't point its customers in the direction of it explicitly (so it'll take quite a few years to be fully adopted).

4 is very interesting too but for usability the bank may also want to control (or at the very least) store backups of the private keys they issue their customers.

BIT-BENDER

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Quote from: 1miau on December 30, 2021, 01:59:20 PM

Recently, a famous German Bank (Volksbanken Raiffeisenbanken, Bayern Mitte) has announced to consider offering Bitcoin services. It happened a few days ago already but it’s a very bullish news if you look at 2 facts:

I have always said that the struggle isn't against banks or Fiat the struggle is to educate as much people as the possible the benefits of adopting Bitcoin and crypto-currency, I think am in support of a free would, and a world where also banks can give it's customer the legit permission to deal in crypto-currency or fait according to their preference. If this happens from this German bank I think it would lead to a healthy coexistence between Fiat and crypto-currency, but after a while I think everyone one would know which should be more preferred my best bet is crypto-currency.

titular

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"Stop using proprietary software."

It's very refreshing to see a banking institution with such an attitude towards digital currency. Bitcoin in particular.

Quote

The most important topic when trading or storing Bitcoin is to be owner of your so-called private key, (secret key allowing access to your Bitcoin). This is where our first considerations were made.
Which trustworthy solutions can we offer for our customers? Many crypto platforms only give limited or no access to private keys because all Bitcoins are centrally stored on behalf of the customer.

Reading this puts a smile on my face. Not only are they advocating for bitcoin, they are educating people that owning your private key is important. Very pleased to see a bank take this angle.

1miau

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Recently, a famous German Bank (Volksbanken Raiffeisenbanken, Bayern Mitte) has announced to consider offering Bitcoin services. It happened a few days ago already but it’s a very bullish news if you look at 2 facts:

1. All Volks- und Raiffeisenbanken in Germany will be likely to follow and have around 30 millions of customers.

2. How it was announced:

All employees will be educated in workshops about Bitcoin, including the most important topics.
Andreas Streb, board director, said „sooner or later, Bitcoin will be important for every Bank and every company“, so he suggested to start adopting it as soon as possible because it’s important for him to stay ahead of foreign players or even local startups. In addition he wants to offer a safe, established environment for his customers to avoid the risk to get scammed by shady foreign exchanges or getting hacked.
Only Bitcoin will be offered:
„We will only offer Bitcoin, not other Crypto assets. Quite simply because only Bitcoin is really a decentralized blockchain application and from our point of view only Bitcoin offers sufficient security against manipulation. All other crypto assets are not comparable to Bitcoin. Above all, they are not decentralized, but there are companies or business models behind influencing the respective Crypto value.“
Most important point: it’s important to own your Bitcoins:
„The most important topic when trading or storing Bitcoin is to be owner of your so-called private key, (secret key allowing access to your Bitcoin). This is where our first considerations were made.
Which trustworthy solutions can we offer for our customers? Many crypto platforms only give limited or no access to private keys because all Bitcoins are centrally stored on behalf of the customer.
[…] Bitcoin centrally stored by platforms is of course an interesting target for hackers. This also counteracts the decentralized storage in the Bitcoin blockchain. That's why we were looking for solutions in which the customer keeps his private key himself and can therefore own his Bitcoin himself.“

It’s a very bullish signal if a board director of a German bank points out what’s important about Bitcoin (education about Bitcoin’s tech, supporting a really decentralized coin (no shitcoins), not your keys not your coins).
We would expect such statements from most long-time forum members, but it’s surprising to hear it from a board director of a German bank.
100% bullish.

It was published here (German), very recommended read (if you translate it): https://www.profil.bayern/12-2021/praxis/bitcoin-wir-lassen-unsere-kunden-nicht-alleine/

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