Switzerland to Open First Ever Bitcoin Bank

A team of eight investors are going to open a new bank in Switzerland that will offer services only with the use of the virtual currency.

Photo: שחר/Flickr

Photo: שחר/Flickr

A first bitcoin bank is expected to be established in Switzerland, reported the Die Handelszeitung newspaper. According to several sources in the financial sector, the initiators of the project have already negotiated with the Financial Market Supervisory Authority and are now expecting to get a license.

The bitcoin bank, which now involves eight members, will provide all traditional banking services, but only with the use of the digital currency. It will become the first bank in Switzerland that will work only with bitcoins.

“Managers of the banks have knowledge both in IT and traditional finance. We hope to apply for Bank license in a few weeks. First people already got in business and now the bank is searching for the premises,” said the IT Specialist Guido Rudolphi, who is one of the current eight members of the bank. “The industry is moving ahead. Some segments are rising while some are still on the horizon,” the investor added.

Die Handelszeitung did not reveal the exact date when the new bank will obtain the license, as well as did not provide any information about the name of the project.

Last year, another bitcoin company also positioned itself as a cryptocurrency bank. The startup, called Circle, started accepting deposits in the digital currency, although it didn’t allow the clients to borrow the cryptocurrency. This caused multiple complaints from the users of Reddit website, who claimed that Circle was not a real bank.

Moreover, some Chinese companies have recently begun offering deposits in the digital currency to their clients. Still, none of these firms applied for a banking license because of the complex system of financial regulation in China.

The opening of the new bitcoin bank makes Switzerland more attractive for cryptocurrency entrepreneurs and investors. The bitcoin wallet Xapo has recently relocated its offices to the capital of Switzerland from Palo Alto, California. Moreover, one of the major banks in Switzerland, called UBS, has also showed its interest in the virtual currency.

Taking into account the major role Switzerland plays in the world economy, the new bitcoin bank could be a significant push towards further adoption of the digital currency.

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