German blockchain banking service Bitwala is set to launch the first-ever platform that will enable the management of both euro deposits and bitcoin funds within the same bank account.
This system is planned to kick off by November with an estimated 30,000 customers who have already signed up for the service. The biggest initial investor for the service is Earlybird Venture Capital, who is providing funds to the tune of €4 million.
Bitwala was founded in 2015 as a financial services company focused on enhancing value exchange between customers in an efficient and cost-effective system. By launching its regulated blockchain service, the company fulfills one of its original goals, which involves bringing a smooth transition between the cryptocurrency and legacy financial systems.
The crypto-fiat service available through Bitwala is designed to provide users with the benefit of accessing the services of a German bank account, provided with Bitwala’s banking partner, which offers SEPA debit and credit transactions, easy management of recurring payments, and a debit card.
Customers under this system will be able to use their Bitwala account for various settlement purposes, such as to receive salary payments and pay their rent. Beyond the fiat-related services, the “bitcoin bank accounts” will offer users the opportunity and instant access to liquidity in trading digital assets directly.
“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,” said Jörg von Minckwitz, president of Bitwala GmbH.
Prior to the suspension of its transaction services in late 2017 due the sudden licence removal of their card issuing partner, Bitwala processed almost €100 million in volume for its 80,000 customers. This was carried out in a robust system that positioned it as an effective global money transfer platform using blockchain technology.
This recent development will mark another milestone achievement for blockchain industry as a whole in terms of achieving mainstream recognition and adoption. Deposits in current accounts in this system will be protected up to €100,000 under the German deposit protection scheme and supervised by Germany’s banking supervisors BaFin and Bundesbank.