BBVA Switzerland will be the financial branch of the giant Spanish bank to support transactions with Bitcoin and custody services from January 2021.
The third largest bank in Spain announced today in its official blog that it will start offering the commercial service for the purchase, sale and custody of Bitcoin Rush through its subsidiary located in Switzerland.
In its statement, BBVA points out the „right moment“ for the launch of its first offer oriented to the management of digital assets, after more than five years exploring solutions with Blockchain technology.
„Digital assets have great potential to transform the way value and information is exchanged through Blockchain technology,“ can be read in the note from the giant Spanish bank.
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„Financial institutions, in collaboration with supervisors, can play a relevant role in the integration of digital assets in today’s markets and infrastructures,“ concludes Alicia Pertusa, the bank’s head of Strategy in Client Solutions.
The financial institution’s entry into the cryptoactive services is taking place in a frenzy with similar precedents to 2017, among the crypto enthusiast community, when the price of Bitcoin reached historical highs for that time.
However, the scenario, although similar in what some specialists call FOMO, has a slightly different context due to the entry of potential institutional players such as BBVA, a scenario that is far from 2017.
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In addition, some countries have already begun to adapt their regulatory framework to meet the needs expressed by some traditional sectors such as the financial sector, to operate in digital asset markets.
According to the official note from BBVA, the services will begin to be offered in January 2021, „with all the guarantees of any other financial asset“, without giving details regarding the custody procedures to be applied to avoid undesired events, which would generate the loss of customer funds.
Also, the bank expects to be able to offer at a later date – without specifying when – other digital assets in addition to Bitcoin.
To finish the note, BBVA points out that it has chosen Switzerland as a starting platform because of the history of adoption and trajectory that the Swiss country has in the ecosystem of cryptomonies and Blockchain technology in general.
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Banking + Bitcoin
The traditional financial system has been one of the most critical sectors on the crypto ecosystem and, especially Bitcoin, in the recent past.
Executives from giant banks like JP Morgan Chase in the United States, or even from Paypal, one of the most popular digital payment systems in the world, until recently had a negative rhetoric towards Bitcoin and the rest of the cryptosystems, even cataloging them as scams.
With the recent entry of these two institutional players into the ecosystem, and their change in rhetoric, plus the open and widespread adoption from the main operators of the world’s most important financial center like Wall Street, the price of Bitcoin has had a significant boost in the last quarter.
It is now expected that BBVA’s announcement will be the tip of the iceberg for a series of similar strategies in the coming days from traditional financial institutions around the world, which will drive the adoption of decentralized digital assets to massive levels, with the final pressure on its price above its all-time high.