Bitwala, a blockchain-based payment company, has revealed plans to launch a new banking service that will connect cryptocurrencies with traditional banking institutions. The service which was described as the “German online bank account for the blockchain generation” will integrate bank accounts, swift codes, International Bank Account Numbers (IBAN) as well as debit and credit cards.
In its announcement, Bitwala said that the new service was still undergoing an application process with the German Federal Financial Supervisory Authority (BaFin). When approved, the blockchain bank will allow customers to transact cryptocurrencies freely alongside normal banking services in a comprehensive package.
The team explained that its contactless debit cards, unlike normal Bitcoin prepared cards, will be linked to user’s bank account and share same balance. This will eliminate fees incurred by topping up a separate Bitcoin prepared card.
Bitwala, in a sense, will be providing users with a full-fledged German Bank account which will be regulated by The Federal Financial Supervisory Authority of Germany (BaFin). This means that customer funds up to €100,000 will be protected under the German deposit guarantee scheme
Bitwala first attempted to integrate fiat and cryptocurrency through Visa debit cards. The venture ended when Visa terminated its operations with its card issuer Wavecrest affecting Bitwala and other payment providers like BitPay and CryptoPay.
The Bitwala team expects the new banking service to kick off in the next few months.