Raiffeisen Bank partners with Bitpanda to offer crypto services
A cryptocurrency offering for all customers
The offering in partnership with Bitpanda will enable RLB NÖ-Wien customers to invest in a wide range of cryptocurrencies. These investments complement the already available products, such as stocks, ETFs, precious metals, and commodities.
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Crypto purchases from 1 euro
Unlike other crypto offerings from traditional banks, RLB NÖ-Wien’s offering will not be limited to institutional investors. Customers will be able to invest in cryptocurrencies with a minimum amount of 1 euro. The new offering will include all instruments available on the Bitpanda platform, totaling over 2,500 assets.
Integrating cryptocurrencies into the European banking system
Despite low penetration of cryptocurrencies in the region, the European Central Bank (ECB) emphasizes that cryptos should be treated as risky assets. The Basel Committee on Banking Supervision (BCBS) proposes a risk weighting of 1,250% for unsecured digital assets such as bitcoin.
BCBS standards could become binding
Although the Basel Committee’s standards have no legal effect, several legislators in the European Parliament are considering implementing rules to strengthen their coercive power. European banks could be forced to issue capital equivalent to their cryptocurrency holdings.
Key Points
What is the goal of the partnership between Bitpanda and Raiffeisen Bank?
The goal is to offer cryptocurrency services to Raiffeisen Bank customers, thereby expanding their range of investment products.
What will be unique about RLB NÖ-Wien’s crypto offering?
Customers will be able to invest in cryptocurrencies starting from a minimum amount of 1 euro, and the offering will not be limited to institutional investors.
How does the European Central Bank (ECB) perceive cryptocurrencies?
The ECB sees cryptos as risky assets and encourages banks to adhere to the standards set by the Basel Committee on Banking Supervision (BCBS).
What are the consequences of BCBS standards for European banks?
Banks may be required to issue capital equivalent to their cryptocurrency holdings and limit their crypto holdings to 1% of their Tier 1 capital.
