- Reportedly, German neobank Bitwala is offering interest rates up to 4.3% to its users through its new Bitcoin Interest Account product.
- It has partnered with Celsius Network, a cryptocurrency lending platform where one can buy, earn and pay on the blockchain.
- It is worth notifying that through this offering by Bitwala, they now stand as the first classic fiat bank in doing so.
Reportedly, German neobank Bitwala is offering interest rates up to 4.3% to its users through its new Bitcoin Interest Account product. Bitwala is the bank account for both crypto and euro. It has partnered with Celsius Network, a cryptocurrency lending platform where one can buy, earn and pay on the blockchain. Hence, through this partnership, it is now possible for German neobank Bitwala users to buy and hold BTC in their bank accounts. Mainly users can now earn interest in Bitcoin (BTC) up to a rate mentioned above.
Say hello to the Bitcoin Interest Account. The new way to generate wealth. Earn up to 4% interest just by HODLing your bitcoin. 🍃
Now available inside the Bitwala app.https://t.co/g0YMwetGkj
— bitwala (@bitwala) May 13, 2020
Users can receive interest payouts on a weekly basis by holding a minimum of BTC in their free Bitcoin Interest. Following this, the BTC held in the accounts can be lent out to partners that are trustworthy through the Celsius Network. And lastly, funds will immediately be converted back to Euros.
Bitwala’s partnership with Celsius Network will let users leverage BTC holdings, says Bitwala CEO
In the same context, Bitwala CEO Ben Jones believes more and more people are trusting Bitcoin at present. Adding that Bitwala was the day-to-day bridge for the same. Additionally, it is worth throwing light on what his say was about their partnership with Celsius Network. Jones was heard stating that this was so as to let their users leverage BTC holdings regardless of where they were. Also, he referred to Celsius Network as the world’s leading provider of crypto loans. Furthermore, stating his view about fiat inflation, he said that it is not possible to inflate fiat money permanently. Meanwhile referring to the Bitcoin halving event.
Bitwala becomes the first classic fiat bank to offer interests for holding BTC
It is worth notifying that through this offering by Bitwala, they now stand as the first classic fiat bank in doing so. The offering of interests in return for holding BTC besides three other Defi DApps. However, the DeFi products have comparatively higher rates, reportedly up to an annual 8.6%. Regardless, Bitwala offers more regulated bank accounts and lends its fiat and crypto services in almost 32 European countries. Also, this is under license from SolarisBank AG which is a leading German bank. And this is according to defiprime.com.
Lastly, from a few years, neobank startups are continuing to struggle to attain banking licenses. Although few were lucky enough to obtain full banking licenses, they failed to offer Bitcoin investment accounts.