Bitcoin, Cryptocurrency and Banking in Germany

It looks like banks are not particularly fond of Bitcoins. Although equipped with the necessary BaFin licenses, so far, banks do not excel when it comes to offering special "Bitcoin products" or the financing of start-ups in this regard. The reasons for this may be both the varied and high risks associated with Bitcoins and the fact that the relevant business models are relatively new, so that banks lack the necessary experience in evaluating the same. It remains to be seen whether and to what extent banks abandon their reluctance in the future and will open up the market with the alternative currency. In any case, Fidor Bank AG has taken a first step: As far as can be seen, it has gotten into the Bitcoin business with its cooperation partner Bitcoin Deutschland AG as the first German bank. The cooperation concluded between Fidor Bank and the leading German trading platform shows that it is indeed possible for banks to participate in the Bitcoin market with the assistance of suitable contractual designs and to simultaneously reduce the legal risks to an acceptable level.