Bitcoin is currently experiencing its first financial crisis since its inception. In 2008, the BTC white paper was published for the first time and was the answer to our ailing financial system and the arbitrariness of the central banks. Although the Bitcoin price is currently showing its strong side again and can outperform gold and stocks, we should wait and see how sustainable the strong price increase of the last few days really is. In the meantime, an Italian bank has set up a Bitcoin brokerage service for its customers. This gives over 1.2 million customers direct access to BTC.
Is the true Bitcoin adoption coming in times of coronavirus panic? How will the Bitcoin course develop in the next few days? Bull trap or outbreak upwards?
Bitcoin trading and custody by Italian bank
Italy is the country most affected by coronavirus in Europe. Not only does the country have the most infected but also the most dead. A curfew is currently in place throughout the country to contain infections and give some breathing space to the already overburdened health system.
At a time when people are stuck at home and interest in Bitcoin has risen dramatically according to Google Trends, Italian bank Banco Sella is taking advantage of the situation and now offers Bitcoin custody and trading via its hype platform (online banking service). So the banking revolution in Italy is already entering the next round. In Germany, 40 banks are already waiting for the license from BaFin to be able to offer BTC and other crypto-currencies to their customers before the end of this year.
The time is ripe for BTC and crypto currencies
Trading is conducted via the bank's hype platform, with the bank acting as an intermediary to mitigate potential security risks from the exchange of crypto-currencies. As the country is in a tight spot and everyone is stuck at home, the bank is using the growing interest in Bitcoin as a safe way to transfer money internationally in the midst of the crisis.
In total, over 1.2 million Italians currently use the hype online bank. Customers will not only be able to trade Bitcoin, but also pay for goods and services directly with the crypto-currencies. This development could ensure that other banks will also offer their customers a similar service. The time is ripe for Bitcoin and crypto currency.
Antonio Valitutti, CEO of Hype, said:
The crypto-currency market, and Bitcoin in particular, continues to arouse interest, especially among the general public, who make up our customer base - by definition young and intelligent, and who increasingly expect to gain access to this world through the tool they use daily to manage money.
First class security and custody
The bank also shows its decentralised approach to security and custody. In cooperation with Conia, a Milan-based start-up, it will provide customers with its own Bitcoin and crypto wallet, including a private key. This gives customers full control over their crypto currencies. They can buy or sell and transfer to/from another wallet at any time.
The Conio software uses three keys for each wallet. One key is located on the customer's smartphone, another on Conio's servers, and the third is kept offline by Hype and distributed among various bank employees. Two keys are required to authorize transactions. In addition, Conia has indicated that they do not require any additional documents or Know Your Customer (KYC) requirements to perform Bitcoin-related activities.
Devaluation of FIAT currencies by central banks plays into Bitcoin's hands
The interest in Bitcoin is on a high again. In the current panic, people are looking for possible alternatives. This is mainly due to the Bitcoin price, which currently makes all other assets look old. The concern that the financial crisis has not yet reached its peak and that the worst is yet to come is causing confidence in central banks to fall more and more.
In recent days, central banks have thrown an incredibly large amount of newly created money onto the market to prevent further sales. In theory, this can help the traditional market a little bit, but at the same time it devalues the money we are holding. This can lead to hyperinflation in the worst case.
That is why some central banks have a thorn in the side of Bitcoin, because the oldest crypto currency can solve exactly this problem and cannot be stopped by its decentralized nature. A few days ago, the central bank in Russia was critical of Bitcoin and cryptocurrencies. But slowly all institutions are realizing that a fight against BTC would be of no use and are even partly forced to integrate the decentralized crypto currency into their own systems.